Virtual Therapeutics, Akili Interactive Strike Definitive Merger Agreement Seeking to Improve Mental Health Through Immersive Video Games

Image Credit: Adobe Stock Images/melita

Virtual Therapeutics and Akili, Inc. announced that they have agreed to terms on a definitive merger agreement, aiming to establish a digital health company that creates engaging and immersive games to improve mental health. Under terms of the merger, Akili will now work as a wholly owned company of Virtual Therapeutics, Akili shareholders will receive $0.4340 per share of common stock in cash, representing a 4% premium to the closing stock price.¹

“In today’s global mental health crisis, patients deserve access to clinically validated solutions that address their specific needs. We have been able to advance multiple solutions on our platform since founding Virtual Therapeutics, and we look forward to taking a significant step forward through this merger,” said Dan Elenbaas, co-founder, CEO, Virtual Therapeutics, in a press release. “The team at Akili has been successful in applying clinical and scientific rigor to bring new products forward, and we believe their expertise will complement our efforts. Together, we can build a company that brings these behavioral services to as many patients as possible—regardless of where they are or barriers that exist for them today.”

In February, Akili announced promising results from a Phase III clinical trial conducted by its partner Shionogi & Co. Ltd, for STD-001, a localized version of EndeavorRx, Akili’s prescription digital therapeutic indicated to improve attentional functioning in pediatric patients with attention-deficit/hyperactivity disorder (ADHD). EndeavorRx was previously authorized by the FDA for patients aged 8 to 17 years with ADHD.

As part of the trial, 164 pediatric patients with ADHD aged 6 to 17 years who received environmental adjustments and psychosocial therapies were evaluated for 25 minutes a day over six weeks. According to the company, the group displayed major improvements in the change from baseline in the Attention-Deficit/Hyperactivity Disorder Rating Scale IV (ADHD-RS-IV) Inattention score compared to the control group (continuing conventional treatments) after six weeks.²

“The latest Japanese clinical trial of our patented, clinically proven technology is an important milestone for many reasons,” said Scott Kollins, chief medical officer, Akili, in a press release. “It not only further validates the efficacy and safety of EndeavorRx, it also moves us and our international partner SHIONOGI a step closer to making the product available in Japan. And if approved in Japan, it will provide an effective and safe option in a country where some front-line pharmaceutical therapies are not as widely available to pediatric patients with ADHD.”

According to the Centers for Disease Control and Prevention (CDC), more than one in five people live with a mental illness in the United States, with one in 25 suffering from a serious mental illness, including schizophrenia, bipolar disorder, or major depression. There are several causes of mental illness, such as trauma or a history of abuse, use of drugs and alcohol, chemical imbalances in the brain, and feelings of loneliness or isolation.³

“Akili ran a thorough strategic process, and we believe that this transaction represents Akili’s commitment to delivering value to the Akili stockholder,” said Matt Franklin, CEO, Akili, in the press release. “Virtual Therapeutics has been built by a team with decades of success in the gaming industry and elected to focus their expertise to help solve the growing mental health crisis. Combining our proven track record developing and deploying rigorously validated mobile digital therapeutics with Virtual Therapeutics’ robust portfolio of VR-based mental health solutions and gaming expertise, we aim to create a compelling platform to address mental health needs across several high-impact indications.”

References

1. Virtual Therapeutics, Akili Interactive Enter Into Definitive Merger Agreement to Establish Leading Digital Health Company. BusinessWire. May 29, 2024. Accessed May 31, 2024. https://www.businesswire.com/news/home/20240529504802/en/Virtual-Therapeutics-Akili-Interactive-Enter-Into-Definitive-Merger-Agreement-to-Establish-Leading-Digital-Health-Company

2. Akili Announces Positive Results from Shionogi’s Phase 3 Clinical Trial of Localized Version of Akili’s EndeavorRx ® for Pediatric ADHD Patients in Japan. Akili. February 26, 2024. Accessed May 31, 2024. https://investors.akiliinteractive.com/news/news-details/2024/Akili-Announces-Positive-Results-from-Shionogis-Phase-3-Clinical-Trial-of-Localized-Version-of-Akilis-EndeavorRx--for-Pediatric-ADHD-Patients-in-Japan/default.aspx

3. About Mental Health. CDC, Accessed May 31, 2024. https://www.cdc.gov/mentalhealth/learn/index.htm