A biotech focused SPAC launched by frequent SPAC sponsor Chamath Palihapitiya announced a merger deal Wednesday morning.
The SPAC Deal: Palihapitiya’s Social Capital Suvretta Holdings Corp I (NASDAQ:DNAA) announced a SPAC merger with Akili Interactive, valuing the company at an equity value of $1 billion.
The deal includes a PIPE of $162 million, with $100 million of the total coming from Palihapitiya’s Social Capital.
After the merger, Palihapitiya will become the Chairman of the Board of Directors for Akili.
The deal is expected to close in mid-2022, with Akili trading on the Nasdaq with the ticker AKLI. Public DNAA shareholders are expected to own 25% of the new company, assuming no redemptions.
Related Link: 2 Chamath Palihapitiya SPAC Deals Rumored: Will He Land The Year's First Deal Once Again
About Akili: Using science and technology, Akili’s digital therapeutic platform is seeking to address cognitive impairments in patients.
Akili’s software platform directly engages brain function in targeted treatments to address cognitive issues like poor concentration, memory loss and difficulties with decision-making. The company said current treatment options for many targeted treatments focus on symptoms and not the root cause.
The company’s EndeavorRx is FDA-cleared and CE-marked as a prescription digital treatment using a video game interface to treat pediatric ADHD.
“Akili is taking a new approach to cognitive science – using software to target our underlying cognitive function and creating an entirely new class of medicines as a byproduct,” Palihapitiya said.
Growth Ahead: Akili said the SPAC deal and financing will help with the commercial launch of EndeavorRx, which is expected in the second half of 2022.
The company also has a pipeline of several targeted treatments including multiple sclerosis, autism, depression and more ADHD treatments. Akili has completed 20 clinical trials across nine disease populations.
“Akili will be positioned to pioneer a new class of digital medicines for millions of people living with cognitive impairment,” the company said.
The company’s Selective Stimulus Management Engine has been used in several proof-of-concept trials to show its function.
Akili said tens of millions of people worldwide live with cognitive health issues. The ADHD market in the U.S. is worth $10 billion, and EndeavorRx will seek to gain a share of the growing market. Akili also said it is working to gain approval in Japan and is working with a partner.
Price Action: DNAA shares are up 2% to $9.82 on Wednesday.
Photo: Courtesy of JD Lasica on Flickr
