Analyst Summary:
Akili, a leading digital medicine company, reported strong financial results for the fourth quarter and full year ended December 31, 2022, and provided an update on business progress. The company reported a 166% increase in EndeavorRx prescriptions in FY 2022 over FY 2021, with a 37% increase in the fourth quarter of 2022 over the third quarter. The company also highlighted the positive impact of its commercial efforts in the initial 8-12 year old market and reaffirmed its FY 2023 expense guidance of $55M-$60M of non-GAAP total operating expenses. The cash runway has been extended into Q1 2025. In addition, the company is expanding its U.S. sales force and working on pursuing an expanded label for EndeavorRx. The company's CEO, Eddie Martucci, noted that they are seeing the positive impact of their commercial efforts and are actively targeting the expansion to help older children with ADHD impacted by inattention. Furthermore, the company expects to have a regulatory submission to the FDA in 2023, which supports the potential for EndeavorRx label expansion. Investors may find the stock attractive as the company is making strong commercial progress, expanding its sales force, and is pursuing an expanded label for EndeavorRx. However, investors should note that the company's future success depends on FDA review of their regulatory submission, and as such, investors should exercise caution with forward-looking statements.