Akili Interactive, a startup that develops video gamed-based digital therapeutics, will go public by merging with special-purpose acquisition company Capital Suvretta Holdings Corp. I, according to a news release Wednesday.
The combined company will be valued at $1 billion and provide Akili with a $412 million cash infusion. Akili plans to use the money to bring to market its EndeavorRx digital therapeutic for pediatric attention deficit hyperactivity disorder. It will also invest in developing digital therapeutics for other ADHD populations, multiple sclerosis, autism and depression.
The company’s technology was the first prescription video game approved by the Food and Drug Administration.
“This transaction represents the next step in our journey to become the world’s leading digital medicine company directly targeting neurological function,” Akili CEO Eddie Martucci said in a news release. “Social Capital Suvretta shares our vision for the future, and we look forward to applying our combined experience as we drive the commercialization of our platform and advance our deep pipeline of prescription digital therapeutics to help people living with cognitive impairments across the globe.”
Digital health companies that went public raised $1.4 billion less in 2021 than they did in 2020, even though 20 companies went public last year compared to just seven in 2020, according to data from Digital Health Business and Technology. That’s largely a result of companies going public earlier, driven in part by SPACs’ desire to go after high-growth industries.