Akili Interactive, the creator of a therapeutic video game designed as a prescription treatment for children with ADHD, has announced a surge in prescriptions for EndeavorRx in Q2. 

Why it’s notable:

• The surge in prescriptions for EndeavorRx, marking a 27% rise from Q1 of this year, is a notable milestone as it showcases growing acceptance and demand for digital therapeutic interventions. This growth hints at a shifting paradigm in the medical field where innovative, non-traditional methods are gaining traction.

• Akili has also been active in managing their expenses over the past year, with a reduction in operating expenses, both GAAP and non-GAAP, for Q2 reflecting a strategic approach to maintaining financial health. The decrease in expenses is attributed to workforce downsizing and a reduction in stock-based expenses. This highlights the company's agility in managing its resources efficiently to changing market dynamics and aligning its costs with its strategic goals. 

Industry implications:

• Akili have traditionally been focused on one product for children with ADHD, however they have recently expanded into the adult ADHD market with their non-prescription product, EndeavorOTC. This strategic move diversifies Akili’s offerings and potentially opens a new avenue for growth, highlighting the company's commitment to addressing a broader spectrum of ADHD patients. Additionally, unlike Pear Therapeutics products which were Rx focused and reliant on payer coverage, Akili has adopted alternative business models through its OTC offering.  

• This news is promising for the field of digital therapeutics after the market suffered a setback earlier this year, when DTx trailblazer Pear Therapeutics closed its doors. The market continues to grow and is expected to reach $21.46B by 2030, with numerous players in the industry receiving funding recently including Better Therapeutics, pioneering developer of software aimed at treating cardiometabolic diseases, receiving $6.7M in new financing.