Akili Interactive, a company known for its video game treatment for attention deficit hyperactivity disorder (ADHD), is facing challenges as it struggles with sluggish sales. In response to this, the company has announced that it will lay off 46% of its staff and explore strategic alternatives. This decision comes after other digital therapeutics companies, such as Better Therapeutics and Pear Therapeutics, have faced similar setbacks and shut down operations or sold off assets.
Founded in 2011, Akili Interactive gained attention in 2020 when its treatment for young people with ADHD, called EndeavorRx, received FDA clearance. However, the company has had difficulty gaining traction with insurers and other potential customers for the prescription app. In an attempt to increase sales, Akili introduced EndeavorOTC, a non-prescription version of the app for adults, which saw better but still modest success. Last year, the company announced a shift in focus towards marketing non-prescription treatments directly to consumers.
The decision to lay off a significant portion of its workforce and explore strategic alternatives may indicate a need for Akili Interactive to reassess its business model and find new ways to generate revenue. This move also highlights the challenges faced by companies in the digital therapeutics space, where building sustainable businesses can be difficult.
As Akili Interactive prepares to release its first-quarter earnings on May 14, the company is likely taking steps to address its current financial challenges and explore options for the future. By making these strategic decisions, Akili Interactive is positioning itself to adapt to the changing market dynamics and find ways to thrive in the competitive landscape of digital therapeutics.
Overall, Akili Interactive’s announcement of layoffs and a strategic evaluation reflects the realities of the digital therapeutics industry, where companies are constantly seeking ways to innovate and succeed in a rapidly evolving market. As the company navigates these challenges, it will be interesting to see how they adapt and potentially transform their business to overcome current obstacles and achieve long-term success.
