- Pear Therapeutics has laid out its approach to clinical data and market access as it aims to grow revenue from its digital prescription therapies more than fivefold in 2022.
- The Boston-based company used its virtual investor day share clinical data and evidence on its products, including the results of a study Posted in Advances in Therapy In Monday. The study used real-world data to link Pear’s digital therapy for substance use disorder, reSET, to an estimated $3,591 reduction in costs per patient.
- Pear also presented details of its reimbursement infrastructure. While BTIG analysts said in a note that the company has built an ecosystem to adequately answer questions from payers, its actions fell 22% on the day of the investors event.
Overview of the dive:
Pear completed last year with 14,000 prescriptions written for its addiction, opioid use disorder and digital therapies for insomnia, above its forecast of 12,500. The 2022 goal is to have 50,000 to 60,000 total prescriptions for the year. By expanding its coverage, the company aims to increase revenue from $4.2 million last year to $22 million this year.
Investors have cooled on the company, and Pear shares have fallen about 47% this year. Most of the stock price decline on Investor Day occurred when markets opened and before the company presentation began.
At the event, Pear discussed data, including the real-world study. The study assessed insurance claims in the six months before and after 101 adults started treatment with reSET, although there was no control group. In the period following the start of reSET use, overall hospital visits fell by 50%, reflecting declines in inpatient stays, partial hospitalizations, and emergency room visits. BTIG analysts expressed optimism about the data.
“We view this as encouraging data that reflects the cost savings that have been seen with other PEAR PDTs, and with the cost savings that more than covers the cost of treatment, we believe this adds another data point. compelling to the company’s conversations with payers,” the analysts wrote in a note to investors.
Pear also used the Investor Day to provide insight into his conversations with payers. Mark Hopman, vice president of market access, compared the conversations to his experience at Dexcom in the early days of the continuous blood glucose monitor space. He noted that payers are “very cautious” because digital prescription therapies are a new category and modality of treatment for them.
As Pear strives to educate payers on digital prescription therapies, it’s building on its successes in securing deals with States including Michigan. Payers mention the same set of questions when assessing whether to cover products.
“Payers are really interested in asking three questions: First, are patients using your product? Second, does your product save me money? And third, how does my organization implement coverage for these products? Julia Strandberg, Pear’s Chief Commercial Officer, said on Investor Day.
Pear seeks to answer the first two questions using data such as actual reSET results. When it comes to implementing coverage, Strandberg said Pear needs to “meet payers where they are,” such as enabling “claims processing within their current infrastructure.”
Pear encourages reimbursement through pharmacy channels or access agreements, which have faster turnaround times, but also works with durable medical equipment suppliers when a medical benefit process is needed.
BTIG analysts said they have the infrastructure to answer all three questions and set a share price target of $12 for the company. The stock is currently trading at around $3.30.