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Tech startups and other businesses raced to line up sources of cash for payroll and other immediate needs after their deposits in Silicon Valley Bank , long a linchpin of tech financing, were locked up when federal authorities took control Friday morning. The bank’s sudden collapse fueled uncertainty among many founders over the immediate future of their businesses, and further hobbled a startup sector that has struggled with a sharp slowdown in venture funding and broader economic woes. Its demise will likely further accelerate the shift away from the high-risk and aggressive growth strategies that startups embraced during the decades-plus bull market that ended last year, according to longtime startup investors.
In eight months, a startup called NextMed has emerged as a growing service among many trying to capitalize on the craze for drugs such as Ozempic, Wegovy and Mounjaro that are often prescribed for weight loss. Run by a founder who graduated from college 14 months ago, the service has web traffic that has surpassed companies like Calibrate Health Inc. and Found Health Inc. that have advertised weight-loss prescriptions for longer. NextMed, whose corporate parent is Helio Logistics Inc., operates with far fewer employees than competitors. Calibrate has hundreds of employees, and Found has around 200.
The ban on first-time online prescriptions for drugs such as Adderall was influenced by improper prescribing during the pandemic, the DEA said. The Biden administration proposed tighter rules for the online prescription of drugs including Adderall and buprenorphine, shrinking the scope of telehealth services that expanded dramatically during the pandemic. The Drug Enforcement Administration on Friday said the telehealth restrictions would take effect after the Covid-19 public-health emergency ends on May 11. The proposed changes affect prescriptions for drugs classified as controlled substances because of their potential for abuse.
In an Instagram ad for online weight-loss service NextMed, a young woman holds the skin on her stomach and complains about her “little tummy pouch.” In an ad for a similar service—launched by Instacart’s former chief executive—a model wears a yellow bikini and weighs 102 pounds, according to a modeling-agency profile. Digital health startups are racing to cash in on booming demand for diabetes drugs that are effective for weight loss, but some of the companies are advertising and prescribing the drugs to people who aren’t overweight.
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWe're finding terrific businesses at reasonable valuations, says Wedgewood's David RolfeBernstein Senior Analyst Toni Sacconaghi and Wedgewood Partners Chief Investment Officer David Rolfe join 'Closing Bell' to discuss tech's market performance, finding value in tech stocks and the prospects for tech going forward.
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWatch CNBC's full interview with Bernstein's Toni Sacconaghi and Wedgewood's David RolfeBernstein Senior Analyst Toni Sacconaghi and Wedgewood Partners Chief Investment Officer David Rolfe join 'Closing Bell' to discuss tech's market performance, finding value in tech stocks and prospects for the sector going forward.
The Drug Enforcement Administration told makers of medication for attention-deficit hyperactivity disorder that it was concerned that “aggressive marketing practices” by companies including telehealth providers could be driving excessive prescriptions, according to a letter from the agency. While the letter doesn’t cite specific companies, it reflects the DEA’s concerns about marketing efforts for ADHD treatment by telehealth companies such as Cerebral Inc. and Done Global Inc., whose prescribing practices the agency has been investigating. The DEA said in December that it wouldn’t allow any increase in 2023 production of pharmaceutical ingredients that go into Adderall and other stimulants used to treat ADHD. The letter, reviewed by The Wall Street Journal, was sent to drugmakers over the summer but hasn’t previously been reported.
The gymnast Simon Biles appeared to stop posting ads for Cerebral Inc. to her social media profiles after the spring, when controversy enveloped the company. Star gymnast Simone Biles and the embattled telehealth provider Cerebral Inc. have parted ways, the company said, after announcing a partnership last year that sought to use Ms. Biles’s mental health advocacy to power growth at the startup. Ms. Biles, who became a widely discussed mental-health symbol after her stunning mid-event withdrawal at the Olympic Games in Tokyo, had been unveiled in October 2021 as the “chief impact officer” for Cerebral. The company provides online access to therapists and prescribers for mental health treatment. Financial terms weren’t disclosed.
The Failed Promise of Online Mental-Health Treatment
  + stars: | 2022-12-18 | by ( Rolfe Winkler | ) www.wsj.com   time to read: 1 min
Remote treatment of mental-health problems surged in the pandemic, as in-person treatment became difficult while pandemic-driven isolation increased anxiety and depression. Digital mental-health companies plunged in, promising to provide millions with access to high-quality care by video, phone, and messaging.
More than 100 groups have asked the DEA to create a registry of providers allowed to continue prescribing controlled substances online. Health startups and medical associations are lobbying for permanent permission to prescribe controlled substances remotely, part of a broader debate over the future of telehealth services that boomed during the pandemic. The push comes after some online startups faced scrutiny from lawmakers and pharmacies over their prescription practices. To maintain pandemic-era telehealth practices, more than 100 groups asked the Drug Enforcement Administration this month to create a registry of providers allowed to prescribe drugs online for conditions including opioid addiction. That would protect their operations when the Biden administration ends the Covid-19 public-health emergency, during which restrictions on telehealth have been relaxed.
Brooks was fatally shot by an officer amid national unrest over police brutality after a Minneapolis police officer murdered George Floyd. Two officers located Brooks and bodycam footage showed they had a calm conversation with him for almost 40 minutes. In the footage, Brooks could be seen holding a stun gun he had grabbed from an officer as he ran away. “While we are disappointed that prosecutors didn’t pursue a criminal case against the officers involved in Mr. Brooks’ death, we continue to hold out hope that the Dept. of Justice will intervene in this matter,” Brooks' family's attorneys said on Monday, according to WXIA.
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWatch CNBC's full interview with Wedgewood Partners CIO David RolfeWedgewood Partners CIO David Rolfe joins 'TechCheck' to discuss tech layoffs, Taiwan Semi managing risk from China and the distribution of U.S. chip producers' share of manufacturing.
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailBuying chip stocks at bargain prices with Wedgewood Partners CIO David RolfeWedgewood Partners CIO David Rolfe joins 'TechCheck' to discuss tech layoffs, Taiwan Semi managing risk from China and the distribution of U.S. chip producer's share of manufacturing.
Cerebral said in a memo that the moves would affect all of the company’s divisions. Telehealth startup Cerebral Inc. told staffers it is cutting jobs and restructuring its operations in moves that will affect about 20% of its employees, shrinking the company to match patient demand and lower growth targets. In a memo to staff on Monday, Chief Executive David Mou said the changes would be spread across all divisions, including headquarters, clinical-care teams and support staff. He said employees would be notified over the course of the week, according to the memo, which was viewed by The Wall Street Journal.
Cerebral said the moves would be spread across all of its divisions. Telehealth startup Cerebral Inc. told staffers it is cutting jobs and restructuring its operations in moves that will affect about 20% of its employees, shrinking the company to match patient demand and lower growth targets. In a memo to staff on Monday, Chief Executive David Mou said the changes would be spread across all divisions, including headquarters, clinical-care teams and support staff. He said employees would be notified over the course of the week, according to the memo, which was reviewed by The Wall Street Journal.
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWe've been slowly but surely adding to our position in Meta, says Wedgewood Partners' David RolfeDavid Rolfe, Wedgewood Partners CIO, joins 'Closing Bell' to discuss the state of technology stocks, if Meta's current valuation is a danger and Rolfe's conviction toward Alphabet.
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWidespread pattern of market lows signals more selling ahead, says Wedgewood's David RolfeDavid Rolfe, Wedgewood Partners CIO, joins 'Closing Bell' to discuss his concerns about the Fed's monetary policy, the potential for an earnings recession and sectors to buy during economic uncertainty.
Adobe is buying the design-software startup Figma for $20 billion. Its early backers, including Index Ventures and Greylock, are likely to see big returns as a result. In a sleepy period for initial public offerings and blockbuster acquisitions, Adobe's $20 billion deal to acquire the design-software company Figma stands out. The acquisition is likely to be a sweet deal for early investors such as Kleiner Perkins, Index Ventures, and Greylock Partners. And now, Adobe is paying $20 billion, a combination of cash and stock, which is twice Figma's last known valuation.
Mental-health startup Cerebral was subpoenaed last month by federal prosecutors as part of an investigation into possible violations of the Controlled Substances Act. The Federal Trade Commission has begun an investigation into mental-health startup Cerebral Inc., according to a letter the FTC sent the company that was reviewed by The Wall Street Journal. In the letter dated June 1, the FTC said it was investigating whether Cerebral engaged in deceptive or unfair practices related to advertising or marketing of mental-health services. The letter also directed the company to preserve documents.
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