- Pear Therapeutics continued to increase revenue on a sequential basis. In the first quarter of 2022, the digital therapy startup had revenue of $2.7 million, up 108% of the last trimester and up 618% year over year. Most of its revenue comes from the sale of its three digital therapies: software treatments for substance use disorders, opioid use disorders, and insomnia.
- As this is a new product category, the company is seeking insurance coverage through studies proving the health and economic benefits of its treatments. Pear recently shared 12-month data on reSET-O, its digital treatment for opioid use disorder, and 24-month data on Somryst, its insomnia treatment, showing reduced visits emergency rooms and hospitalizations for patients who have used these treatments.
- The pear is stick to forecasts $22 million in revenue for 2022 and 50,000 to 60,000 total prescriptions for the year. The company stopped tracking the total number of lives covered, which it had used as an indicator of the payout rate, and which had become increasingly complicated as patients now access its products through both their pharmacy benefit and as durable medical equipment, CEO Corey McCann said Monday. call. Instead, the company discloses the average payout rate and average selling price for its therapeutic products.
Overview of the dive:
New financial information from Pear provided more insight into how the company derives revenue from its digital therapies. In the first quarter, Pear filled a total of 9,200 prescriptions, of which approximately 57% were filled. Of those, about half were turned into paid prescriptions, at an average sale price of $1,353.
For the year, Pear expects to see fill rates of 50% to 65% and payout rates of 50% to 65%, at an average sale price of $1,150 to $1,350. The average sale price is expected to decline throughout the year as Pear uses it as leverage for larger trades, Credit Suisse analysts wrote in a research note Tuesday.
Insurance coverage was front and center in Monday’s earnings call. Pear management discussed getting coverage earlier this year in the states of Oklahoma and Michigan for his treatments for substance use and opioid use disorders. However, these agreements are structured around earmarking funds to purchase access to these products, unlike Pear’s agreement with the state of Massachusetts, which provides coverage to everyone with Massachusetts Medicaid.
Asked by an analyst if Pear hopes to expand other states with broader access, like in Massachusetts, McCann said “that’s probably a bit beyond what I can talk about today.” .
“I think the inference you made is appropriate, where in many of these arrangements we have the opportunity to demonstrate not just for a particular state that we are able to bend the cost curve and generate real economic results health matter. , but these projects become demonstration projects, which really helps us to reach out more widely to other things,” added the CEO.
The health economic data that Pear presented this week also takes this effort into account.
On Monday, Pear shared 12-month data on its treatment for opioid use, showing that 901 patients showed significant reductions in hospital stays and emergency room visits, and increased adherence to buprenorphine, according to a memo. Monday’s research from BTIG. On Tuesday, Pear presented 24-month data on its treatment for insomnia, showing a reduction in emergency room visits, hospitalizations, sleeping pill use and outpatient visits in about 250 patients, according to the research note.
“We expect these studies to be important in PEAR’s conversations with payers,” the BTIG analysts wrote.