Companies
/
Cerebral

Healthtech
Cerebral is a telehealth company providing online mental health treatment, including therapy and medication management, that has faced significant regulatory and legal scrutiny over its prescribing practices for controlled substances.
$838M
+$4.97
849.53%
30 days ago
$0.59
Create an account to view live offerings, pricing, and market activity.
Sign in to view offerings and live market activity.
Sign up with Augment to see the latest market activity.
Cerebral was founded in 2019 by Kyle Robertson, growing very rapidly during the COVID-19 pandemic as demand for accessible telehealth mental health services surged and in-person psychiatric and therapy appointments became harder to access, offering online mental health assessments, therapy sessions, and, notably, medication management services that could prescribe psychiatric medications, including stimulant medications used to treat attention deficit hyperactivity disorder (ADHD), through a fully virtual model. The company's rapid growth and aggressive direct-to-consumer marketing, alongside a business model that some critics argued incentivized prescribers to write prescriptions quickly to support subscription retention, drew significant scrutiny starting in 2022. Cerebral came under investigation by the U.S. Department of Justice and the Drug Enforcement Administration over concerns that its prescribing practices for stimulant medications may have violated federal rules around telehealth prescribing of controlled substances, particularly rules that had been temporarily relaxed during the COVID-19 public health emergency to expand telehealth access, and the company faced a wave of negative media coverage, including reporting alleging that some clinicians felt pressured to prescribe stimulants quickly to meet patient demand and subscription targets. In response to this scrutiny, Cerebral announced it would stop prescribing controlled substances like Adderall for new ADHD patients, its founder and CEO Kyle Robertson departed the company, and the company conducted significant layoffs and restructuring as it worked to address the regulatory concerns and rebuild trust. Cerebral ultimately reached settlements related to the investigations, including agreeing to pay tens of millions of dollars to resolve federal claims related to improper billing and prescribing practices. The episode became a widely cited cautionary case study regarding the risks of the rapid, venture-funded telehealth prescribing boom that occurred during the pandemic-era relaxation of controlled substance telehealth rules, and Cerebral has continued operating with a more constrained scope of services and greater compliance oversight following these events.
FOR QUALIFIED INSTITUTIONAL AND ACCREDITED INVESTORS ONLY: Under federal securities laws, private market investments on this platform are available exclusively to Institutional and Accredited Investors. Verification of status required before investing. Private investments involve significant risks including illiquidity, potential loss of principal, and limited disclosure requirements. "Augment" refers to Augment Markets, Inc. and its affiliates. Augment Markets, Inc. is a technology company offering software and data services, not a bank or financial institution. Cash Accounts are provided by Modern Treasury Corp. financial institution partners and through Augment's technology. Augment does not act as a money services business, provide money transmission, or serve as a custodian of funds. Funds held in your Cash Account are not FDIC insured unless expressly disclosed. Full terms available in the Augment Cash Account Agreement. Brokerage services are offered through Augment Capital, LLC, an affiliated broker-dealer and member FINRA/SIPC. "Investment accounts" are not brokerage accounts and do not hold customer funds or securities. Investment advisory services are offered through Augment Advisors, LLC, an SEC-registered investment adviser. Registration with the SEC does not imply a certain level of skill or training. Neither Augment Advisors, LLC nor Augment Capital, LLC provide legal or tax advice; consult your attorney or tax professional regarding your specific situation. For additional information, please refer to Augment Advisors, LLC's Form ADV Part 2A (Firm Brochure) and FINRA BrokerCheck.