Fitness and sleep-tracking smart-ring-maker Motiv has been acquired by Proxy, a company specializing in digital-identity security. The companies announced the purchase in accompanying blog posts, and did not share the terms of the deal.

Proxy CEO Denis Mars wrote that his company has hired "a majority" of Motiv's employees, and will be shifting the focus of Motiv's consumer platform away from health tracking and toward biometric authentication for the home and enterprise.

"Wearables are where mobile phones were in in the 90s, the flip phone days. For the most part, they have been relegated to fitness and sleep tracking, when we see more profound purposes possible," he wrote in the blog post. "With this acquisition, Proxy plans to bring digital-identity signals to smart rings for the first time and revolutionize the way people use technology to interact with the world around them. We believe it’s possible to ignite a paradigm shift in how people use wearables to interface with the physical world, so they can do and experience things they never have before."

The smart-ring-maker wrote in its announcement that it would continue to support the Motiv App for existing device owners. Health and sleep data collected through the app will remain private to users and "will not be viewed or uploaded into any Proxy service," the company wrote.

However, Motiv said that it has ended new online sales of the smart rings as well as redemption of its sizing sets.

WHY IT MATTERS

From Jawbone, to Pebble, to the countless product lines discontinued by tech giants, the consumer health wearable space is no stranger to shutdowns or strategic pivots. With many of these examples in mind, Motiv's acquisition and strategy shift is far from a worst-case scenario for the pivoting company and (the majority of) its team.

"Motiv saw a clear path forward in the importance of validating one’s identity in both the physical and digital worlds," the company wrote in its announcement. "Keys, access cards, and passwords are rapidly being replaced with a biometric identity which provides greatly improved security and convenience. As part of Proxy, Motiv will have the resources to empower every person with a unique identity signal they own and control." 

That's not to say that the company won't reappear within a healthcare context down the road. Many health organizations over the years have been investigating digital biometrics technologies as a means to quickly verify a patient or provider's identity, to allow for quicker data access and a more convenient patient experience.

THE LARGER TREND

The San Francisco company made its first splash in 2017, when it demoed the smart ring at CES. Of note, the company included biometric security features with the second generation of its device in 2018, an addition that likely played a role in its eventual acquisition. Its primary competition in the last couple of years was the Finnish Oura Ring, another consumer fitness-tracking device, which landed $28 million in new funding just last month. 

But when it comes to consumer wearable deals, last year's news of Fitbit's acquisition by Google is the clear highlight. Unlike Motiv, however, the companies have made it clear that their $2.1 billion deal will still have the company developing and selling new devices alongside its other service-based offerings.

Pear Therapeutics is rolling out its new digital therapeutic aimed at treating schizophrenia for limited distribution, after the FDA loosened up its regulations for digital psychiatric disorders devices during the coronavirus crisis. 

The new tool, called Pear-004, uses multimodal neurobehavioral interventions combined with antipsychotic medications. Patients with schizophrenia can use the tool for social skills training, cognitive behavioral therapy for psychosis and for illness self-management training. Pear-004 has to be used under a doctor’s supervision. The company is collaborating with select healthcare providers and academic institutions for the initial distribution. 

Two weeks ago, the FDA came out with a new guidance that waives several regulatory requirements for devices aimed at treating psychiatric disorders including submission of 510(k) premarket notifications, reports of corrections and removals requirements, registration and listing requirements, and unique device identification (UDI) requirements.

The agency is still requiring that products undergo and demonstrate software verification, validation and hazard analysis; meet FDA's requirements for cybersecurity protections; include labeling instructing patients to contact a physician prior to using the device; and prompt users to acknowledge the physician contact recommendation.

Today Pear-004 is still categorized as a “potential treatment for people with schizophrenia” and has yet to be evaluated in a pivotal clinical trial or have its clinical data reviewed by the FDA. However, the company said the product has been used in two clinical studies, which show high satisfaction and engagement rates among patients. 

“Thanks to FDA’s Emergency Guidance, Pear is pleased to have the opportunity to help people suffering from schizophrenia by providing temporary access to our product candidate, Pear-004, during this time of greater need,” Dr. Corey McCann, president and CEO of Pear Therapeutics, said in a statement. “We embrace FDA’s guidance to temporarily expand the availability of experimental digital therapeutics to facilitate patient use during a time of heightened stress and to reduce potential exposure to COVID-19.”

The FDA wrote in last week's guidance that the relaxed restrictions enabling Pear’s release are only intended to last for the duration of the COVID-19 emergency. 

WHY IT MATTERS 

Around the world there are over 20 million people with schizophrenia, according to the World Health Organization. 

The coronavirus pandemic has created obstacles for getting patients care. Today many doctors are turning to digital tools as a way to get more resources into the hands of patients. 

“The COVID-19 pandemic has disrupted mental health care for people with serious mental illness like schizophrenia, as it has all sectors of society, and impeded their access to essential treatments,” said Dr. Jeffrey A. Lieberman, Pear advisor and chair of the Department of Psychiatry, Columbia University College of Physicians and Surgeons, said in a statement. “In response, mental health providers have readily adopted virtual methods of communication and practiced telepsychiatry. PDTs will usefully augment the scope and quality of services provided. In this context, Pear-004 could play a critical role in demonstrating the value of technology-based mental health care, particularly when access to face-to-face clinical interventions is limited.”

THE LARGER TREND 

This isn’t the first digital therapeutic to take advantage of the relaxed guidelines. Last week Akili has fast-tracked and released its approval-pending digital therapeutic, Endeavor, for children with ADHD.

While Pear-004 is temporarily taking an alternative route to the traditional 510(k) clearance, Pear Therapeutics is no stranger to the process. In 2017 it landed a de novo for its digital therapeutic reSET, which treats substance abuse disorders. More recently it landed clearance for Somryst, a prescription digital therapeutic for chronic insomnia, which was the first to be evaluated through the FDA's Digital Health Software Precertification Program.