Better Therapeutics strengthens financials with amendment to debt, costs

Better Therapeutics disclosed several initiatives aimed at extending the company’s cash runway sufficiently to demonstrate commercial traction with its lead product, AspyreRx. The company launched AspyreRx in October of this year, after receiving U.S. Food and Drug Administration FDA authorization in July for the treatment of adults with type 2 diabetes. Better Therapeutics successfully negotiated an amendment to its debt facility with Hercules Capital, granting the company the opportunity to extend the Interest Only IO period until mid-2024, redeem up to $2.5M of debt without prepayment penalties, and potentially eliminate the minimum cash covenant. The amendment also grants the Company an option to convert a portion of the debt into equity, under certain conditions. In addition, to further strengthen its financial position and maintain investments to support the commercial launch of AspyreRx, the company is implementing various cost-saving measures, including company-wide salary reductions for the first quarter of 2024. These measures, along with other operational plans, are expected to improve the company’s financial position by approximately $5M through the first quarter of 2024. Frank Karbe, President and Chief Executive Officer at Better Therapeutics, expressed confidence in the company’s trajectory, stating, “We recognize the importance of prudent financial management and are confident that these measures will position Better Therapeutics for sustained success. With healthcare providers now prescribing AspyreRx and patients actively undergoing treatment, we expect to be able to demonstrate commercial traction over the next few months. In parallel, we continue to advance partnering discussions and evaluate all financing options available to us.”