STAT+: Akili abandons prescription business model, to lay off 40% of workers
Akili's move from prescription to OTC sales for its ADHD therapy signifies a major shift in digital therapeutics industry. Company also announced layoffs.
Akili Interactive, which in 2020 made waves by receiving Food and Drug Administration clearance for its video game that improves symptoms of ADHD in children, on Wednesday announced it would reorient its business around selling its products directly to users over the counter, rather than by prescription.
In connection with the move away from prescription sales, Akili will reduce its workforce by 40%, which the company projects will extend its runway into the second half of 2025. The Boston-based company will continue offering its pediatric treatment, EndeavorRx, by prescription until it can convert it to over-the-counter labeling — it plans to submit data to FDA in 2024.
Akili went public last year and though its prescription sales were slowly increasing, the company’s costs far outstripped its revenues. In its second-quarter results reported in August, Akili said it earned just $114,000 on $15.3 million in expenses.
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