Better Therapeutics Obtains FDA Approval for Smartphone-Based Behavioral Diabetes Therapy

by Warren Seah

Shares of Better Therapeutics Inc. (BTTX) experienced a significant surge in after-hours trading following the company’s recent approval from the Food and Drug Administration (FDA) for its smartphone-based behavioral diabetes therapy. The San Francisco-based digital therapeutics company saw its stock rise by 27%, with a peak surge of 48%, after a 19.6% decline during the regular session. The stock closed at 90 cents and recorded a trading volume of 5.3 million shares, significantly higher than the 52-week average daily volume of about 309,000 on the Nasdaq.

Approval of AspyreRx as a Groundbreaking Prescription Digital Therapeutic

Better Therapeutics received FDA approval for its prescription digital therapeutic (PDT) known as AspyreRx. This innovative therapy provides cognitive behavioral therapy specifically designed for patients aged 18 and older who have been diagnosed with Type 2 diabetes. AspyreRx is the first PDT to receive approval for nutritional cognitive behavioral therapy, marking a significant achievement not only for Better Therapeutics but also for the entire PDT class.

Industry Analysts’ Positive Outlook and Market Potential

Charles Rhyee, an analyst at TD Cowen, expressed an optimistic view of the FDA approval and its implications. Rhyee, who rates the stock as “outperform,” considers this milestone as a crucial development for Better Therapeutics and the overall PDT field. However, he also pointed out that the main challenge lies in driving widespread adoption and securing payor coverage for PDTs in general.

Funding for Commercial Launch and Future Prospects

Rhyee anticipates that Better Therapeutics will need to secure additional funding before its commercial launch. The analyst projected that the company currently has enough cash runway to sustain operations until the end of the third quarter. Better Therapeutics plans to roll out AspyreRx in the fourth quarter, aiming to further revolutionize the field of cognitive behavioral therapy for patients with Type 2 diabetes.

Analyst Ratings and Target Price

According to FactSet data, out of the four analysts covering Better Therapeutics, three have assigned buy-grade ratings, while one has assigned a hold grade. The average target price for the stock is $7, reflecting significant potential growth.

As Better Therapeutics prepares to bring its innovative smartphone-based behavioral diabetes therapy to market, all eyes will be on the company’s ability to drive adoption and secure payor coverage for PDTs. With this recent FDA approval, Better Therapeutics is poised to make a significant impact in the field of digital therapeutics and improve the lives of patients with Type 2 diabetes.

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