Akili Interactive, a digital medicine company, is going public via special purpose acquisition company (SPAC) merger. The roughly $1 billion-dollar deal will see the healthcare company merge with Social Capital Suvretta I (NASDAQ:DNAA), one of venture capitalist Chamath Palihapitiya’s blank-check companies. As such, all eyes are on DNAA stock ahead of the latest headline-grabbing SPAC merger.
So what do you need to know about Palihapitiya’s latest endeavor?
According to the press release, the deal will funnel $412 million to Akili. This includes $162 million in private investment in public equity. Akili says that these proceeds will help support the commercial launch of its prescription treatment for pediatric ADHD. It will also help more broadly support clinical development.
This deal marks yet another high-profile SPAC merger in a volatile market. In fact, this is actually Palihapitiya’s second SPAC merger just this month. On Jan. 18, Palihapitiya announced that the third Social Capital Suvretta SPAC was merging with ProKidney in a $2.64 billion deal. Palihapitiya is a well-known entrepreneur, and part owner of the Golden State Warriors. This month’s deals cement his interest in the world of SPACs.
DNAA Stock Sees Pleasant Uptick on Akili Merger
Akili is best known for its therapeutic, FDA-approved videogame, EndeavorRx. In fact, the game is a treatment for ADHD in children. Released in June 2020, there have been several studies that reinforce the medicinal efficacy of the game. As such, the game apparently helps improve attention skills by providing children with in-game distractions they have to ignore. The game progressively ramps up the difficulty and monitors performance to maximize the beneficial effects.
This is clearly leaps and bounds away from the traditional medicines that doctors prescribe to treat ADHD. However, as stated on the EndeavorRx website, the game is not a standalone treatment and should be used in conjunction with other therapeutics. Regardless, the alternative treatment has demonstrated its viability in mitigating ADHD symptoms.
By all counts, investors are intrigued by the deal. DNAA stock is up more than 2% so far today on news of the impending merger. The deal is expected to close midway into the year and will see DNAA stock trade under the new AKLI ticker.
On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.