Big Health, a digital therapeutics company, has recently acquired Limbix, a maker of prescription digital therapeutics focused on treating depression in teenagers and young adults. Limbix has developed SparkRx, a self-guided cognitive behavioral therapy (CBT)-based treatment for depression in individuals aged 13 to 22. SparkRx was released in October 2021 and falls under the relaxed regulatory requirements for digital health devices treating psychiatric disorders during the pandemic set by the FDA.
The acquisition will see SparkRx added to Big Health’s portfolio, which already includes Daylight therapeutic for anxiety and Sleepio for insomnia. Both companies see significant alignment in their cultures and their goal of delivering first-line digital therapeutics for various mental health conditions. Limbix’s CEO, Ben Lewis, believes that Big Health, as the industry leader, is the perfect home for SparkRx and their team, allowing them to accelerate the delivery of clinically-proven digital depression treatments to young people.
Limbix received $15 million in Series A2 funding in 2021, bringing their total funding to $31 million. They previously raised $9 million in Series A funding in 2020 and were selected as one of 27 digital health companies for MassChallenge HealthTech’s 2020 accelerator class. Big Health, on the other hand, raised $75 million in Series C funding last year, just two years after their Series B raise of $39 million.
This acquisition comes at a time when digital therapeutics and mental health services are gaining significant attention and investment. Evernorth, the health services arm of insurance company Cigna, recently added Big Health’s Sleepio and Daylight to its digital health formulary, expanding the availability of these digital therapeutics. CVS Health also announced the addition of several digital health apps, including Big Health’s Daylight, to its Point Solution Management service in 2020. The service aims to help CVS Caremark pharmacy benefits management clients enroll in third-party health apps.
Overall, this acquisition allows Big Health to expand its digital therapeutics offerings and strengthen its position in the mental health space. The addition of Limbix’s SparkRx to their portfolio will provide individuals aged 13 to 22 with a self-guided CBT-based treatment for depression, aligning with Big Health’s focus on delivering clinically-proven digital therapeutics for various mental health conditions. This acquisition reflects the growing interest and investment in digital therapeutics and highlights the potential of these tools in improving mental health outcomes.
