$BTTX Betting On Digital Therapeutics

2023年6月11日

The world of digital therapeutics is not a new one as there are more than 350 thousand digital therapeutics apps out there. In order to succeed in this highly competitive market, an app needs to provide a unique edge. One such edge can be found in Better Therapeutics, Inc.’s (NASDAQ: BTTX) BT-001 which provides specialized type 2 diabetes-oriented tools. BTTX’s approach to developing software for specific illnesses is not unique but its thoroughness allows it to provide a litany of much-needed services that are not common in other digital therapeutic software. That said, the FDA is projected to make an announcement in regard to BT-001’s de novo application within the coming weeks. If accepted, BT-001 will enter the market which could result in BTTX stock going on a major run.

BTTX Fundamentals

With a low float of 10.3 million, BTTX stock is one to watch closely over the coming weeks as its promising BT-001 app might enter the market. There is a large quantity of digital therapeutics apps that simply rely on utilizing a digital planner in order to help their clients develop beneficial habits which are essential for improved well-being. BTTX’s BT-001 not only utilizes this structure but also improves upon it by adding essential and unique tools that aid in type 2 diabetes treatments specifically. With this in mind, BTTX has a $9 price target which might indicate that BTTX’s prospects could be bright if BT-001 is successfully launched into the market.

BT-001

Specialization is a desired trait in digital therapeutics. Many digital therapeutic apps simply develop generalized health plans for their clients, on the other hand, BT-001 utilizes its specialization in type two diabetes tailor-made tools such as cognitive behavioral therapy (CBT) and personalized treatment that takes into consideration the patient’s specific condition.

CBT is a treatment paradigm usually utilized for the treatment of neurodivergence by identifying behavioral cues and behaviors/habits. From there, a strategy is formulated to tackle the harmful habit. Utilizing this treatment paradigm BT-001 could help users identify cues that stimulate cravings that are harmful for type 2 diabetes patients – specifically those that have habitual dietary cues. By identifying these cues, users could formulate more precise strategies for improving their dietary habits.

In order to test digitally delivering CBT, BTTX conducted a large randomized study consisting of 669 subjects. The data showed that BT–001 patients exhibited improvements superior to patients under the current standard of care. Patients utilizing BT-001 exhibited significant reductions in A1c at 90 and 180 days which is extremely promising.

Currently, BTTX is waiting for the FDA’s decision regarding BT-001’s de novo application within the coming weeks as the company announced it expects a decision within 90 days back in May. If BT- 001’s de novo application is accepted, it is poised to enter the market as the first digital CBT system specialized in type two diabetes. With the FDA decision approaching, BTTX stock is one to watch closely for a run in anticipation of the decision.

Type 2 Diabetes Market

Although there are dozens of diabetes apps in the market, BT-001 is unique in that it provides its users with more than just planning schedules as it also provides them with CBT that assists in modifying their dietary habits which improves glycemic control. Due to the significant improvements BT–001 provides over the standard of care, it could hit the type 2 diabetes market by storm if it is successfully launched into the market.

Given that 37 million Americans have type 2 diabetes, BT-001 is likely not going to experience any shortage in demand especially since standard diabetes treatments are not affordable to a large portion of the population.

BTTX Financials

According to BTTX’s Q1 report, it saw a notable QoQ decrease in its assets from $22.9 million to $12.8 million, which is mostly due to its decrease in cash from $15.7 million to $6 million. Its liabilities also decreased from $23.8 million to $22.6 million.

BTTX managed to decrease its expenses YoY from $9.3 million to $8.9 million, however, its net loss remained relatively unchanged from $9.6 million to $9.3 million.

Technical Analysis

BTTX stock is in a neutral trend with the stock trading in a sideways channel between $.6712 and $.7854. Looking at the indicators, the stock is trading below the 200 MA, however, it is trading above both the 50 and 21 MAs. Meanwhile, the RSI is neutral at 56 and the MACD is neutral as well.

As for its fundamentals, BTTX is expecting BT-001’s de novo application results over the coming weeks. If approved, BT-001 will enter the market which will help the company realize revenues for the first time. For this reason, BTTX could be one to watch closely as it could soar on FDA approval.

BTTX Forecast

Not all products are created equal. A perfect example of that is BT–001, which is a state-of-the-art digital therapeutic software that maximizes efficiency by utilizing CBT to treat people with Type 2 Diabetes. As is, BTTX is anticipating an FDA decision regarding BT-001’s de novo application in the coming weeks which might allow the stock to run as it would be a step closer to profitability if its app is launched into the market.