SensNews June 2020

21 Sensor100 2020 Proteus Digital Health Files for Bankruptcy Proteus Digital Health, maker of an ingestible sensor for tracking medication adher- ence, filed for Chapter 11 bankruptcy protection on June 15. In US law Chapter 11 Bankruptcy is a process which protects companies from their creditors while they reorganize their debt. Proteus developed technology for micro sized sensors which, when embedded in a pill, emitted a signal when the pill was swallowed. The signal was detected via a skin patch and subsequently transmitted to a smart phone. It is intended to help patients take medication on time, and was originally targeted at mental disorder patients. The company reached its first licensing agreement with Otsuka Pharmaceutical in Japan. A representative from Otsuka said that the company won't be putting out any official statement on its business partner's bankruptcy, but said that delivery of Abilify MyCite – a sensor-enabled version of Otsuka's schizophrenia drug that was developed as a result of the companies' collaboration – will not be affected. Proteus is now shifting its focus to oncology and infectious diseases, where it hopes its technology will have better traction. Originally a high-flyer, Proteus had raised more than $500 million across several invest- ment rounds, at a valuation of $1.5 billion. Abilify MyCite made waves when it received the FDA's green light back in late 2017, with some musing that the adherence technol- ogy could become a game changer for the pharmaceutical industry.The $88 million deal it signed with Otsuka in 2018 was a major digital health buy-in from an international pharma player, and a common topic of panel conversation at industry events. What went wrong? No doubt this issue will long be debated in the digital health sec- tor. Technology, cost, business model, and choice of initial target market are all possible factors. In 2008, Proteus was hailed as a pioneer in sensor technology having devel- oped a technology to open a new sensor market additional to established glucose and pregnancy tests. It would be sad if a way forward could not be found for this innova- tive technology. Mobile Health News June 16 Company News