REDWOOD CITY — Proteus Digital Health, a once-hot health technology startup that had invented a digital pill, is planning to cut hundreds of jobs and close facilities in Redwood City and Hayward, state labor documents show.
Founded in 2001, Proteus has developed a digital pill technology that investors once deemed to be a hot ticket, but the company has now been forced into a wrenching restructuring amid its efforts to capture fresh sources of funding.
The Proteus technology consists of a sensor inside a pill or other medication that, once ingested by the patient, can transmit information as to whether the pill was actually consumed.
The company’s technology was thought to be so promising that at one point, Proteus had achieved a valuation of $1.5 billion.
That’s all changed now.
Proteus has revealed plans to eliminate 292 jobs in the Bay Area, according to a notice sent to state and local officials.
The will occur in connection with the company’s plans to cease operations at its current headquarters in Redwood City as well as at two locations in Hayward, the filings with the state Employment Development Department showed.
“Proteus is currently conducting an operational review and restructuring our business to optimize effectiveness,” the company said in comments emailed to this news organization. “Driving change in healthcare takes persistence and Proteus is committed to ensuring that patients get access to technologies that can significantly improve their care.”
The job cuts and facilities shutdowns are slated to occur by Jan. 18, 2020, the EDD filings stated.
“Peer-reviewed studies have shown repeatedly that digital medicines improve the quality and cost-effectiveness of care, especially for patients who have the most difficulty succeeding with drug therapy,” Andrew Thompson, chief executive officer and co-founder of Proteus Digital Health, said in comments emailed to this news organization.
The technology has been shown to be able to help patients who might have difficulty sticking to a medication schedule.
“Many of these patients were older, low income and had a mental health secondary diagnosis,” Thompson said.
For now, however, the future appears to be cloudy for Proteus Digital Health — and for the company’s workforce.
“The entire facility and all operations will be closed,” Proteus said of its plans to eliminate 202 jobs in Redwood City.
Regarding its plans to close the Hayward sites and cut 90 jobs, Proteus said, “The entire facility, consisting of two buildings will be closed and all operations will cease. The planned action is expected to be permanent.”
