Better Therapeutics (NASDAQ: BTTX) Stock Information | RedChip


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Better Therapeutics develops software to revolutionize how we treat disease. Its proprietary prescription digital therapeutics (PDT) platform delivers a novel form of cognitive behavioral therapy (CBT) to address the underlying lifestyle behaviors that sustain or worsen cardiometabolic diseases. The CBT delivered by Better Therapeutics’ PDTs is designed to enable changes in neural pathways of the brain so lasting changes in behavior become possible. Addressing the underlying causes of type 2 diabetes (T2D), heart disease, and other conditions, has the potential to dramatically improve patient health while lowering healthcare costs. Better Therapeutics’ FDA regulated, clinically validated mobile applications are intended to be prescribed by physicians and reimbursed like traditional medicines.

Better Therapeutics stands at the forefront of the prescription digital therapeutics (PDT) industry, offering a groundbreaking approach to managing cardiometabolic diseases, a sector marked by substantial patient populations, deep unmet medical needs, and considerable financial burdens on healthcare systems. BTTX's proprietary platform not only addresses these challenges head-on but also aligns seamlessly with existing treatment paradigms that prioritize behavioral change.

Better Therapeutics’ FDA-authorized product AspyreRx demonstrated statistically significant and clinically meaningful outcomes in treating type 2 diabetes (T2D), showcasing the potential of its digital CBT solution to modify disease progression and improve patient health. This presents a win-win for patients, providers, and payers by offering an effective, safe, and accessible treatment option. Unlike traditional pharmaceuticals, BTTX operates with a higher-margin, lower-risk model. The digital nature of its products reduces costs associated with toxicity/safety testing, manufacturing, and supply chain logistics, allowing for rapid and cost-efficient pipeline expansion. The platform's cost-effectiveness is underscored by its pricing model, which is a fraction of the cost compared to leading pharmacological agents like Ozempic and Wegovy,. This economic advantage, combined with reimbursement akin to traditional medicines, positions BTTX's offerings as highly attractive to health insurance companies, potentially ensuring wide adoption and sustained revenue growth.

Better Therapeutics is guided by an accomplished team with deep experience in the medical device and pharmaceutical sectors, including pivotal roles at industry giants such as Johnson & Johnson and Novartis,. The Company’s co-founder and executive chairman, David Perry, has founded and built five innovative companies in the last 20 years, including Chemdex (peak valuation $11 billion) and Anacor Pharmaceuticals (acquired by Pfizer for $5.2 billion in 2016). Perry has personally invested $65 million into BTTX, including $8.6 million in open market buying. BTTX CEO Frank Karbe, a Goldman Sachs alum with a history of leadership roles at Myovant Sciences and Exelixis, brings financial acumen and a proven ability to navigate the biotech industry successfully. This blend of experience and commitment positions BTTX on a solid foundation for innovation, growth, and market penetration in the PDT space.

With two buy ratings and a median price target of $5.25 per share, BTTX stands out as a compelling investment opportunity within the digital health space. Its unique approach to managing cardiometabolic diseases through its PDT, combined with a robust business model, strong leadership, and positive market dynamics, positions BTTX for blockbuster potential. For investors looking to capitalize on the intersection of healthcare innovation and digital technology, BTTX offers a promising avenue with the potential for substantial returns.


Additional Scientific Areas of Interest

Obesity, chronic kidney disease, heart failure, and other metabolic diseases

  • Created the first PDT for the treatment of adults with T2D – AspyreRx (authorized by the FDA in July 2023)
    • FDA authorization was based on the results of a large randomized controlled pivotal trial that demonstrated that AspyreRx was safe and effective when combined with existing standard of care treatments.
    • AspyreRx has the potential to save insurers money by improving patient outcomes and by reducing or delaying more expensive healthcare interventions.
    • AspyreRx addresses the underlying psychological, behavioral, and cognitive factors that sustain or worsen T2D. Counseling patients on changes in lifestyle behavior is already part of the T2D treatment guidelines, yet providers lack a standardized, scalable and easily accessible option to help patients be successful in changing their lifestyle.
    • AspyreRx became commercially available in October 2023.
    • >$1 billion dollar commercial potential
  • Platform technology targeting large and growing market opportunity
    • US national healthcare expenditure was $4.1 trillion in 2020, according to Centers for Medicare and Medicaid Services.
    • 86% of healthcare dollars are spent on chronic disease maintenance, and 60% of adults in the US have a chronic disease, according to the CDC.
    • Diabetes is the most expensive chronic condition in the US and its cost and prevalence continues to increase. Approximately 37 million adults in the US have been diagnosed with diabetes. People with diabetes account for one of every four healthcare dollars spent in the US – in 2022 this equated to $413 billion.
  • Accomplished leadership and commercial team with experience launching both medical devices and diabetes drugs
    • Team includes industry veterans from Amgen, Genentech, J&J and Novartis.
    • Co-founder and executive chairman, David Perry, personally invested $60M+ into Better Therapeutics. Perry has founded and built five innovative companies in the last 20 years, including Chemdex (peak valuation $11 billion) and Anacor Pharmaceuticals (acquired by Pfizer for $5.2 billion in 2016).
    • CEO Frank Karbe was previously President & CFO of Myovant Sciences (acquired by Sumitomo Biopharma for $4.7 billion) and EVP & CFO of Exelixis (Nasdaq: EXEL; $6.8 billion valuation as of January 2024).
  • Better Therapeutics has buy ratings from Lake Street and Chardan Capital with median price target of $5.25 per share

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