Digital medicine firm Akili Interactive to merge with Social Capital Suvretta

Akili Interactive, a US-based digital medicine company, has agreed to merge with Social Capital Suvretta Holdings Corp. I (SCS), a special purpose acquisition company (SPAC), in a deal that values the combined entity at around $1 billion.

Through the deal, Akili Interactive will become a publicly-listed company with a listing on Nasdaq under the “AKLI” ticker symbol.

Akili Interactive is engaged in developing cognitive treatments with the help of game-changing technologies. The company’s treatments are designed to directly stimulate the networks in the brain that are responsible for cognitive function.

Its core therapeutic engine, which is the Selective Stimulus Management Engine (SSME), is designed specifically to target and activate neural systems that have a role in attentional control. Akili Interactive believes that the SSME platform can be potentially applied across a diverse range of indications within neurology and psychiatry.

The company’s treatments are provided to patients via engaging interactive mobile games, that are customized to each individual and developed to give a feel of high-end entertainment products.

According to Akili Interactive, its SSME technology has already shown proof-of-concept in controlled trials targeting attention and cognitive dysfunction in attention-deficit/hyperactivity disorder (ADHD), autism spectrum disorder (ASD), multiple sclerosis (MS), and major depressive disorder (MDD).

Digital medicine company Akili Interactive to merge with Social Capital Suvretta. Image courtesy of chenspec from Pixabay.

Based on the SSME technology, the digital medicine company developed EndeavorRx, which is claimed to be the first-ever prescription video game to have been cleared by the US Food and Drug Administration (FDA) for enhancing attention function in children, aged between 8 to 12 years with either primarily inattentive or combined-type ADHD.

Eddie Martucci — CEO of Akili Interactive said: “Over the past 10 years, we have created a platform representing a new era of cognitive medicine, driven by our fundamental focus on patients, advanced science and proprietary technology, and the mission-driven hard work of our entire team.

“We believe medicine now can be both effective and engaging. 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.”

The SPAC deal is expected to provide gross cash proceeds of up to $412 million to Akili Interactive. This includes up to $250 million of cash held in the trust account of Social Capital Suvretta and a $162 million of private investment in public equity (PIPE).

The PIPE is led by Social Capital with an investment of $100 million. The remaining $62 million will come from new and existing investors such as Suvretta Capital Management’s Averill strategy, Temasek, co-founder PureTech Health, Apeiron Investment Group, Evidity Health Capital, Polaris Partners, Omidyar Technology Ventures, and JAZZ Venture Partners.

Chamath Palihapitiya — Founder and CEO of Social Capital and Chairman and CEO of Social Capital Suvretta said: “Akili is taking a new approach to cognitive science – using software to target our underlying cognitive function and creating an entirely new class of medicine as a byproduct.

“With its first-ever, clinically validated digital therapeutic (EndeavorRx), Akili has the unique opportunity to change how we treat pediatric ADHD. They have also laid the groundwork to treat a wide range of other cognitive issues affecting tens of millions of people around the world.”

The deal, which is subject to approval by shareholders of the two merging firms, regulatory approvals, and other customary closing conditions, is likely to close in mid-2022.