Accelmed’s growth strategy can be illustrated through AP-II’s investment in Click Therapeutics, a New York based digital therapeutics company that develops, validates, and commercializes software as prescription medical treatments for people with unmet medical needs.
Accelmed's investment thesis was driven by the desire to have exposure to “best in class” products in this emerging field, to partner with large PE funds that shared similar values, by Click’s strong clinical rigor and evidence-based approach to product development and by Click’s risk-mitigating commercial strategy of partnering with leading global pharma companies to address large commercial opportunities such as major depressive disorder & schizophrenia.
These pharma partnerships allowed for the synergistic effect of matching pharma’s global launch readiness expertise with Click’s engaging, safe and effective digital interventions to deliver the best clinical patient experience.
Click had a strong portfolio of prescription digital therapeutics (PDTx) partnered since 2019 with multiple global pharmas which paid for Click’s product development. Under these commercial arrangements, Click was unable to publish clinical data freely, it was subject to slow decision making on FDA guided trial design and it had to execute its first fully virtual, pivotal trial for major depressive disorder (MDD), an area where many pharma companies had failed to show statistically significant efficacy vs placebo. With this backdrop and COVID-19 driven delays during 2020-21, Click was left undercapitalized and in urgent need to raise capital.
Accelmed first met Click in Q1/2020 but high valuation expectations and Accelmed’s concerns about time to first commercial product kept it apart. Click approached again in the Summer of 2021 with a more realistic valuation and a tighter execution plan. In October, Accelmed co-led a $52 million series B round with HIG, investing $15m of growth capital. Following closing, Accelmed worked with the company to onboard a new CFO, develop a detailed operating plan to see three PDTx products funded to FDA clearance during the 2022-2024 timeframe and re-financed its debt with $15 million from SVB (announced on 1/2022) at a much lower cost.
Since the investment, Click has more than doubled its revenues, achieved significant clinical and regulatory milestones, and expects to launch its first prescription digital therapeutics product to treat MDD by Q1/2024 in collaboration with Otsuka.