Pear Therapeutics, Inc. (Pear) and Thimble Point Acquisition Corporation (THMA) have agreed to enter into a merger which will result in Pear becoming a wholly-owned subsidiary of THMA. THMA is a special purpose acquisition company (SPAC) that targets high-growth technology-enabled businesses. (SPACs are also known as blank check companies, because investors in the SPAC acquire interests in the SPAC before a specific acquisition target is identified.) SPAC transactions allow the target to go public without utilizing an initial public offering or direct listing. The Pear transaction values the company at a pro forma enterprise value of $1.2 billion, and will leave $450 million in cash on Pear's balance sheet after closing.
Pear was founded in 2013, and has developed the first three prescription digital therapeutics (PDTs) authorized by the Food and Drug Administration (FDA). PDTs are software-based therapeutic interventions that are prescribed by clinicians to treat conditions. Pear's FDA-approved PDTs are authorized for treatment of addiction to alcohol, cannabis, cocaine and stimulants; opioid use disorder; and chronic insomnia. Pear claims to have 14 product candidates in its pipeline, a scalable infrastructure to discover and develop new PDTs, and a platform capable of hosting PDTs developed by Pear and third parties utilizing a clinician dashboard. Products currently in the pipeline include products for psychiatric, neurologic and gastrointestinal disorders. Pear evaluates the overall addressable market for PDTs to be over $250 billion in the U.S. According to Morning Consult, the FDA has authorized around 35 to 40 PDTs.