Novartis (NYSE:NVS) unit Sandoz said this week that Pear Therapeutics will take sole responsibility for the commercialization of their prescription digital therapeutics program for treating substance and opioid use disorders.
In April 2018, Pear announced that it agreed to deal commercialization rights of its digital therapeutics to Sandoz. The companies did not disclose financial details, but Boston-based Pear Therapeutics said the agreement included an upfront payment, R&D funding, commercial milestones and a profit split on net sales.
Pear has already built a standalone commercial infrastructure for the digital therapeutics and Sandoz said it believes the company is capable of delivering its product to patients. However, Sandoz added that it will continue to partner with Pear in support of the company’s efforts to develop the reSET and reSET-O offerings during a transition period.
Sandoz said the decision to hand sole responsibility for commercialization to Pear is part of the company’s transformation and leadership change, which has resulted in focus on its core business, according to a news release.
Pear’s reSET substance use disorder therapy became the first prescription digital therapeutic approved by the FDA in September 2017. In January of this year, Pear and Sandoz launched reSET-O, the first FDA-cleared prescription digital therapy for people with opioid use disorder. That same month, the company closed a $64 million Series C round geared toward the digital therapeutics.
Shares of NVS were up 0.3% at $87.24 per share in midday trading today.