Akili Interactive to cut staff by 30%

Akili InteractiveThe maker of video game-like digital therapy for children with ADHD announced last week that it would cut about 30% of its staff.

The layoffs, which affect 46 employees, are expected to be completed by the end of the first quarter. filing documents with the Securities and Exchange Commission.

Akili will also suspend some programs related to cognitive health other than ADHD to “save capital and focus.” Affected programs include tools under development for autism spectrum disorders, multiple sclerosis, major depressive disorder, and a cognitive monitoring program that was about to begin trials.

In a message to employees, CEO and co-founder Eddie Martucci said the company will focus on expanding the adoption and reach of EndeavorRx, its digital therapeutic, which has received FDA De Novo clearance in 2020.

“In order to allow Akili to be as independent as possible from the current economic situation, I believe that Akili needs to expand our runway to be able to progress towards our vision of making EndeavorRx – and by extension cognitive healing – part of mainstream healthcare. care. This means we need to reduce our operational footprint to a more sustainable level,” he wrote. “To achieve this, we are reducing both internal and external costs as we strive to create a sustainable operating model and put us on the path to profitability.”

BIG TREND

Akili went public through a merger with a special purpose acquisition company last summer.

However, the company the share price collapsed after its public debut, and the company posted a net loss of $53.2 million in the third quarter. EndeavorRx made just $82,000 in the third quarter.

In a SEC filing, Akili expects its total non-GAAP operating expenses to be between $55 million and $60 million in 2023. The company said that its cash flows currently extend into the first quarter of 2025.