Digital health 'unicorn' once valued at $1.5B files for bankruptcy: 4 details

Listen
Text
  • Small
  • Medium
  • Large

A digital health company considered one of the first "unicorns" in the industry filed for bankruptcy, according to CNBC.

Four things to know:

1. Proteus Digital Health, a company that developed ingestible sensors to detect when medications are taken, filed for Chapter 11 bankruptcy on June 15.

2. The company was valued at $1.5 billion in April 2019, according to Forbes. It aimed to help prevent patients from forgetting to take medications.

3. Proteus has about $100 million to $500 million in assets and $50 million to $100 million in liabilities. Its creditors include Workday and Otsuka America Pharmaceutical, which the company had planned to partner with in 2017. Otsuka invested $88 million in Proteus, but the deal was terminated in January.

4. While the company has struggled in recent months to raise money, it has raised more than $500 million in venture capital. Proteus has also initiated a sale process.

“Filing for bankruptcy protection allows Proteus to continue its sales process in a more concerted and efficient manner while continuing to run the business as usual," according to a statement from the company.

More articles on digital transformation:
Health IT deals on track to hit $15 billion in Q2: 5 things to know
Northwell Health, University Hospitals join $12M funding round for virtual care company
Cleveland Clinic Ventures had 7 spinoffs, invested $10M in 10 companies last year

 

Copyright © 2021 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.

 

Featured Whitepapers

Featured Webinars