UPDATE: Chardan Capital Markets Starts Better Therapeutics (BTTX) at Buy

(Updated - November 24, 2021 7:37 AM EST)

Chardan Capital Markets analyst Keay Naka initiates coverage on Better Therapeutics (NASDAQ: BTTX) with a Buy rating and a price target of $17.00.

The analyst commented, "We initiate coverage on Better Therapeutics with a Buy rating (PT $17) on the potential of its proprietary platform for the development of FDA-regulated, software-based, prescription digital therapeutics (PDTs), to treat a broad array of cardiovascular and metabolic diseases, starting with type 2 diabetes. PDTs which are defined as a software driven treatment option that utilizes a digital and often online health technologies, which deliver evidence-based interventions to patients designed to treat behaviors, as opposed to medications, that treat symptoms of the targeted disease. PDTs are prescribed by physicians, and hence should be viewed as a subset of the broader class of digital therapeutics (DTx), which include non-prescription digital therapies for health and wellness conditions. Better's PDTs represent a new kind of cognitive behavioral therapy, they call nutritional-CBT, designed specifically to address the cognitive patterns and mental structures that drive dietary choices/habits and associated lifestyle behaviors, which are root causes of almost every cardiometabolic disease. The CBT sessions are delivered via a scalable and affordable mobile application used on smartphones and tablets. Better's PDT's are regulated by the FDA as medical devices, requiring FDA de novo authorization or 510(k) clearance (with a Class II predicate), which can be a quicker, less costly path to commercialization compared to a drug. We believe that lower regulatory risk is offset by higher commercial and reimbursement risk. Better's PDTs represent relatively new and novel therapeutic approaches, and will require educating patients and prescribers about the distinct features, therapeutic benefits, cost savings, and other advantages of its PDTs compared to competitive products to improve outcomes. Further, establishment of widespread reimbursement will be critical to successful commercialization. This will require real world evidence, beyond that necessary to obtain 510(k) clearance, demonstrating that Better's PDTs deliver both clinical and economic value. Better's PDTs are expected to be reimbursed by payors as a pharmacy benefit (the same way as drugs), with patient out-of-pocket costs determined by tier of formulary placement."

For an analyst ratings summary and ratings history on Better Therapeutics click here. For more ratings news on Better Therapeutics click here.

Shares of Better Therapeutics closed at $6.41 yesterday.

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