SBR Network - Find detailed guides that will help you do well.
  • 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 - Find detailed guides that will help you do well.
  • 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 - Find detailed guides that will help you do well.
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
4 years ago
in Healthcare
0
Digital health start-up once worth $1.5 billion is racing to keep lights on as investors flee
406
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
Reasons To Buy New Furniture While Renovating an Office
Business & Markets

Reasons To Buy New Furniture While Renovating an Office

by Nicole Haley
September 25, 2023
0

Image Source: modernsensefurniture.com Businesses frequently update their furniture with new, cutting-edge designs by upgrading it. Companies can make the office...

Read more
The Value of Commercial Garbage Compactors

The Value of Commercial Garbage Compactors

September 21, 2023
How to Trade Stocks Online?

How to Trade Stocks Online?

August 23, 2023
How Kevin Modany Stays at the Top of His Game: Finding Excellence in Corporate Leadership

How Kevin Modany Stays at the Top of His Game: Finding Excellence in Corporate Leadership

August 2, 2023
5 Benefits of Organising Professional Duct Cleaning

5 Benefits of Organising Professional Duct Cleaning

July 31, 2023

Recent Posts

  • Reasons To Buy New Furniture While Renovating an Office September 23, 2023
  • The Value of Commercial Garbage Compactors September 21, 2023
  • How to Trade Stocks Online? August 22, 2023
  • How Kevin Modany Stays at the Top of His Game: Finding Excellence in Corporate Leadership August 2, 2023
  • 5 Benefits of Organising Professional Duct Cleaning July 31, 2023
  • Patient Engagement: Challenges and Strategies May 5, 2023
  • How to verify the legitimacy of a cryptocurrency exchange April 26, 2023
  • Reputation Poll International’s 2023 List of 100 Most Reputable Africans Adds Distinguished Lawyer NJ Ayuk  March 1, 2023

2023

  • – September (2)
    • Reasons To Buy New Furniture While Renovating an Office
    • The Value of Commercial Garbage Compactors
  • + August (2)
  • + July (1)
  • + May (1)
  • + April (1)
  • + March (1)
  • + February (1)
  • + January (3)

2022

  • + December (6)
  • + November (1)
  • + October (10)
  • + September (6)
  • + August (4)
  • + July (1)
  • + June (4)
  • + April (3)
  • + March (4)
  • + February (19)
  • + January (8)

2021

  • + December (5)
  • + November (1)
  • + October (2)
  • + September (6)
  • + August (2)
  • + July (9)
  • + June (8)
  • + May (6)
  • + April (3)
  • + March (5)
  • + February (1)
  • + January (4)

2020

  • + December (6)
  • + November (1)
  • + October (9)
  • + September (6)
  • + August (14)
  • + July (15)
  • + June (11)
  • + May (4)
  • + April (11)
  • + March (18)
  • + February (15)
  • + January (1)

2019

  • + December (22)
  • + November (73)
  • + October (54)
  • + September (1)

Tags

how to gamble on sports wholesale church suits
September 2023
M T W T F S S
 123
45678910
11121314151617
18192021222324
252627282930  
« Aug    
Patient Engagement: Challenges and Strategies
Healthcare

Patient Engagement: Challenges and Strategies

As healthcare providers continue to face the challenge of engaging with their patients, it is becoming increasingly important to understand ...

May 6, 2023
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

Categories

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

Recent News

Reasons To Buy New Furniture While Renovating an Office

Reasons To Buy New Furniture While Renovating an Office

September 25, 2023
The Value of Commercial Garbage Compactors

The Value of Commercial Garbage Compactors

September 21, 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
  • Privacy Policy
  • SBR Network
  • Team Info

@ 2022 SBR Network.