Pear Therapeutics is partnering with telecommunications and information technology conglomerate SoftBank Corp. to develop a digital therapeutic treating sleep-wake disorders for the Japanese market.

Under the agreement, SoftBank will research market opportunities for the therapeutic and can negotiate an exclusive license to commercialize the product in Japan. 

Pear said the deal is part of its larger strategy to commercialize its therapeutics in other countries. The company already has an FDA-approved product for chronic insomnia, Somryst, which launched in late 2020. 

"Our agreement with SoftBank supports our mission to bring digital treatment options to patients outside of the United States. The Japanese market has a large unmet need in treating people with sleep disorders," said Pear president and CEO Dr. Corey McCann said in a statement. "This opportunity fits squarely in our strategy to bring our PDTs to patients around the globe."

WHY IT MATTERS

A study published in Sleep Medicine found 12.2% of Japanese men and 14.6% of women reported insomnia. Around 8% of men had trouble falling asleep, and nearly 6% said they had difficulty maintaining and resuming sleep. The prevalence was higher for women, with 11% having trouble falling asleep and 8% reporting difficulty staying asleep.

Meanwhile, COVID-19 had a serious impact on sleep disorders and other mental health issues. An international survey conducted during the early months of the pandemic found clinical insomnia symptoms were reported by nearly 37% of respondents. 

THE LARGER TREND

In December, Pear wrapped up its merger with special-purpose acquisition company Thimble Point Acquisition Corp. and began trading on Nasdaq. The newly public prescription digital therapeutic company closed its opening day at $10 per share, and ended Friday at $4.44.

Pear offers other digital therapeutics, including products for substance use disorder and opioid use disorder, and has been moving into other clinical areas. In November, it announced it had scored FDA Breakthrough Device Designation for a therapeutic aimed at alcohol use disorder.

The company also acquired assets from fellow digital-therapeutic company Waypoint Health Innovations, as well as the assets of Örebro University researcher Fredrik Holländare, for depression treatment.

Other U.S.-based digital therapeutic companies have been inking deals to expand their reach abroad. Just last week, Happify Health revealed a partnership with Zuellig Pharma to commercialize two of its prescription digital therapeutics in Asia.

In 2019, Akili Interactive, which makes a video game-like therapeutic treating ADHD in children, entered into an agreement with Osaka, Japan-based Shionogi to handle sales, clinical development and marketing in East Asia. Earlier this year, Akili announced plans to go public via its own SPAC merger.