SBR Network
  • Home
  • About SBR
  • Topics
    • Business & Markets
    • Economy
    • Education
    • Entertainment
    • Finance
    • Food & Drinks
    • Healthcare
    • Home
    • News
    • Sports
    • Technology
  • Contact SBR
  • Pages
    • Team Info
    • Privacy Policy
    • Editorial Policy
    • Cookie Policy
No Result
View All Result
SBR Network
  • Home
  • About SBR
  • Topics
    • Business & Markets
    • Economy
    • Education
    • Entertainment
    • Finance
    • Food & Drinks
    • Healthcare
    • Home
    • News
    • Sports
    • Technology
  • Contact SBR
  • Pages
    • Team Info
    • Privacy Policy
    • Editorial Policy
    • Cookie Policy
No Result
View All Result
SBR Network
No Result
View All Result

Digital health start-up once worth $1.5 billion is racing to keep lights on as investors flee

mm by Richard Bell
3 years ago
in Healthcare
0
Digital health start-up once worth $1.5 billion is racing to keep lights on as investors flee
405
SHARES
2.4k
VIEWS
Share on FacebookShare on Twitter

Proteus Digital Health has spent two decades trying to develop “smart pills” that can be used to tell a smartphone app whether patients have taken their medications. The technology was so promising that, three years ago, investors valued the company at $1.5 billion.

But Proteus has struggled to turn its vision into reality and is now desperate for cash after an expected $100 million funding round recently fell through, according to people familiar with the matter. To preserve enough money to stay afloat, the company furloughed the majority of its employees for about two weeks in November, said the people, who asked not to be named because the information is confidential.

As 2019 wraps up, Proteus has become the latest Silicon Valley company that’s gone from a one-time high flyer, raising a total of over $500 million, to deep in crisis mode after its partnership with a large pharmaceutical company failed to materialize in a way that could justify its valuation. It’s an ominous sign for the digital therapeutics space, which has lured major investors but has struggled to find breakout successes and has seen big drugmakers walk away from key partnerships.

At Proteus, the furloughed employees were brought back to work in recent weeks after the company was able to land $5 million in emergency funding, according to people with knowledge of the matter. But with roughly 300 people on staff, according to LinkedIn, that money may not last long. Executives at three other digital health companies said they’ve seen an uptick in resumes from Proteus employees in the past few weeks.

“Proteus is currently conducting an operational review and restructuring our business to optimize effectiveness,” a company spokesperson told CNBC in an email. “We are taking into consideration the impact of our restructuring on employees, patients, customers, partners and investors.”

The problem Proteus was trying to tackle is real. Patients don’t always take their meds and don’t necessarily know if they’re up to date with them. Researchers estimate that a lack of adherence to prescriptions results in $100 billion to $300 billion in costs tied to health-care spending and loss of productivity.

With that backdrop, Novartis invested in Proteus in 2010, an agreement that allowed the drugmaker to license Proteus technology for organ transplantation, following a small study to track patients’ compliance with their blood pressure drugs. Later, Proteus moved into mental health, developing digestable sensors that send a notice to users’ smartphones, indicating whether they’re properly medicated or if they missed a dosage. The system also includes wearable patches that detect responses to medicines, as well as mobile apps and data analytics software for hospitals to track intervention.

In 2017, Proteus announced a partnership with pharmaceutical company Otsuka for a digital medicine system called Abilify Mycite and received approval from the Food and Drug Administration. As part of the deal, Otsuka agreed to invest $88 million, including some equity and other funds for development. The landmark regulatory clearance allowed the companies to combine a pill and a patch, which had been previously and separately approved by regulators, into a therapy for people with schizophrenia, bipolar disorder and depression.

But the treatment never gained material traction with patients, according to two people familiar with the matter, making it hard to keep top talent. The company has experienced a wave of high-level departures in the past few years, such as Chief Commercial Officer Molly O’Neill, who left in 2018.

Raising additional money also became a bigger challenge. Otsuka wasn’t willing to put in more cash and other potential investors were waiting for data from the Otsuka deal before writing a check, the people said, even if they were intrigued by the first-of-its-kind digital medicine system.

“The problem is that pharma hasn’t rationalized a way to incorporate digital or sell digital-only interventions,” said Bill Evans, CEO of digital health venture fund Rock Health, who was speaking about the industry generally. “When it comes to pharma and digital, it’s been a challenge to match the cultures and really start to execute.”

A spokesperson for Otsuka’s U.S. unit said in an emailed statement that the company has had a “strong collaboration for many years” with Proteus, “from clinical development to FDA approval to commercial availability.” The representative didn’t comment on current plans, saying only that “Otsuka is committed to its digital medicine program and we are excited about the future and our role in providing an innovative approach to systematically assist patients and their family caregivers by helping to inform the patient’s illness management and personalized treatment plan.”

Proteus isn’t alone. Pear Therapeutics, a digital therapeutics company working on apps for substance use disorders, just lost a key partnership with Sandoz, the generics division of Novartis.

Their experiences underscore the limitations of advanced digital therapies. Pharmaceutical companies don’t have a roadmap yet to get the products out widely to patients or clinicians, regulatory agencies have been slow to approve them and insurers haven’t established clear reimbursement plans. It’s also not obvious who should be monitoring patients if they stop taking medications.

Proteus is “a really interesting technology, but it is a lot to ask of a patient to play along with this kind of system, which involves a pill and patch,” said Christine Lemke, a co-founder of Evidation Health, a digital health company that works with pharmaceutical companies.

Proteus has started focusing on other conditions outside of mental health. In 2017, it moved into oncology and infectious disease with a digital cancer chemotherapy pill. The company has also touted its Discover product, targeted at people with chronic conditions, as its equivalent of Tesla’s Model X. In its statement to CNBC, the company described Discover as a “valuable near-term opportunity.”

While the company has gained accolades for its early efforts to improve health care in innovative ways, that doesn’t always translate into a successful business.

“These companies are plowing the field for the industry,” said Steve Kraus, a health investor at Bessemer Venture Partners. “I can’t stress enough how hard that is.”

Previous Post

Minecraft Bedrock Version Coming to PS4

Next Post

Away replaces CEO Steph Korey after Verge investigation

mm

Richard Bell

When it comes to stories in the healthcare sector which are making ripples, and waves in the global market scenario, Global Market Release relies most on Richard Bell. His eye for detail, and skills when it comes to spotting stories which matter makes him invaluable to the team. His commitment to the healthcare sector proves him to be the best man for the job.

Next Post
Away replaces CEO Steph Korey after Verge investigation

Away replaces CEO Steph Korey after Verge investigation

  • All
  • Education
Reputation Poll International’s 2023 List of 100 Most Reputable Africans Adds Distinguished Lawyer NJ Ayuk 
Law

Reputation Poll International’s 2023 List of 100 Most Reputable Africans Adds Distinguished Lawyer NJ Ayuk 

by Nicole Haley
March 2, 2023
0

NJ Ayuk has been sitting at the head of Africa’s energy table for quite some time now, and remains one...

Read more
Your Guide to Online Doctor’s Notes

Your Guide to Online Doctor’s Notes

February 17, 2023
You Will Never Believe These Bizarre Truths Behind Accident Attorneys

You Will Never Believe These Bizarre Truths Behind Accident Attorneys

January 27, 2023
What Makes Blood Vessels Grow?

What Makes Blood Vessels Grow?

January 24, 2023
SEO: What Is It and How Does It Work?

SEO: What Is It and How Does It Work?

January 6, 2023

Recent Posts

  • Reputation Poll International’s 2023 List of 100 Most Reputable Africans Adds Distinguished Lawyer NJ Ayuk  March 1, 2023
  • Your Guide to Online Doctor’s Notes February 17, 2023
  • You Will Never Believe These Bizarre Truths Behind Accident Attorneys January 27, 2023
  • What Makes Blood Vessels Grow? January 24, 2023
  • SEO: What Is It and How Does It Work? January 6, 2023
  • 2022’s Best Batsmen and Bowlers: Who Will Come Out on Top? December 30, 2022
  • Easy Ways To Up Your Game While Betting On Cricket Online December 30, 2022
  • How To Win More Money Horse Racing: Tips To Optimize Your Odds December 16, 2022

Archives

  • March 2023
  • February 2023
  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
March 2023
M T W T F S S
 12345
6789101112
13141516171819
20212223242526
2728293031  
« Feb    
Your Guide to Online Doctor’s Notes
Healthcare

Your Guide to Online Doctor’s Notes

An online doctor's note is a document obtained by a patient through a virtual medical consultation. It verifies their medical ...

February 17, 2023
What Makes Blood Vessels Grow?
Healthcare

What Makes Blood Vessels Grow?

Blood vessel growth is essential for fast and effective wound healing. The more blood vessels, the quicker new tissue can ...

January 24, 2023
10 Ways to Protect Your Mental Health at Work
Healthcare

10 Ways to Protect Your Mental Health at Work

No matter what you do for a living, work impacts the state of your mental health — for better or ...

June 11, 2022
Is Your Vape Juice The Right One For You?
Healthcare

Is Your Vape Juice The Right One For You?

Are you a vaper who switches their current vape flavour as often as possible, or have you found a tasty ...

April 13, 2022
Perception towards Online Movie Watching Has Been Changed
Entertainment

Perception towards Online Movie Watching Has Been Changed

Online films are a kind of video made explicitly to be watched on the web, for the most part on ...

February 25, 2022

Categories

  • Business & Markets
  • Economy
  • Education
  • Entertainment
  • Finance
  • Food & Drinks
  • Gambling
  • Healthcare
  • Home
  • Insurance
  • Law
  • Life
  • News
  • SEO
  • Sports
  • Technology
  • Travel
  • Wine

Recent News

Reputation Poll International’s 2023 List of 100 Most Reputable Africans Adds Distinguished Lawyer NJ Ayuk 

Reputation Poll International’s 2023 List of 100 Most Reputable Africans Adds Distinguished Lawyer NJ Ayuk 

March 2, 2023
Your Guide to Online Doctor’s Notes

Your Guide to Online Doctor’s Notes

February 17, 2023
  • About
  • Our Team
  • Advertise
  • Privacy Policy
  • Get In Touch

@ 2022 SBR Network.

No Result
View All Result
  • About SBR Network News
  • Contacting SBR Network
  • Cookie Policy
  • Editorial Policy
  • Get In Touch
  • Home
  • Home
  • Privacy Policy
  • Team Info

@ 2022 SBR Network.