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Wearable-sensor maker Rockley Photonics, which touted high-profile strategic partnerships with Apple and Medtronic, filed for Chapter 11 bankruptcy this week.

Why it matters: Having gone public via SPAC in 2021, Rockley is the latest domino to fall in what will likely be a continuing reckoning for the SPAC market, Claire writes.

Details: In the bankruptcy petition filed Monday, Rockley asked to be allowed to proceed as a “debtor in possession,” which would let the company to continue operating without interruption.

Per the filing, Rockley has a reorganization strategy to eliminate debt and restructure its capital makeup, expected to add $35 million in cash to support its ongoing operations.

Rockley’s stock was halted from further trading on the New York Stock Exchange on Monday, and the exchange said it would start to fully delist the stock.

Rockley does not intend to appeal the delisting, according to its 8-K.

Catch up fast: Rockley Photonics raised almost $168 million after a SPAC merger with SC Health.

The deal included significant investment from Senvest Management and Medtronic.

Yes, but: The transaction was expected to deliver up to $323 million of gross proceeds to the company, including $173 million from SC Health.

SC Health in fact provided $17.8 million. 

How it works: The company's “spectrophotometer-on-a-chip” technology is used in wearable devices to continuously track various biomarkers.

Rockley unveiled its "clinic on the wrist" system in 2021, which monitors health data and sends it to a smartphone app powered by Rockley's machine learning algorithms that further analyze the data. 

Zoom in: Commercial versions of that device have yet to appear, all while Rockley racked up debt and its stock price slipped.

Rockley Photonics files for bankruptcy

1. Rockley Photonics files for bankruptcy

Illustration of a health plus with darts all around it, as if they've missed the target. 

MyOrthos, an SV Health-backed orthodontics platform, is exploring strategic options, sources told Claire on Monday.

Why it matters: MyOrthos is the third dental deal to come to market, signaling an investor sweet tooth (sorry, not sorry) for the space, this year.

Plus: Monday's Pro Rata on Elliott's Salesforce stake. 

2. MyOrthos in market

Illustration of a one dollar bill zoomed in to show George Washington smiling with a mouth full of white teeth.

Fertility technology startups are in the midst of a funding frenzy, putting the category among the sixth most heavily funded treatment verticals in 2022, per Rock Health.

Why it matters: Demand for fertility services is on the rise, and its increasingly opaque and inaccessible nature has left room for nimble, tech-forward companies to fill the gaps, Erin wrote Tuesday.

Plus: Tuesday's Pro Rata, on Elon Musk's testimony and Serta's bankruptcy.

3. Fertility tech banks investor dollars

Illustration of a quarter surrounded by sperm.

People Science wants to revamp the clinical research ecosystem for nontraditional medicines.

Why it matters: People raised a second seed round of $5.3 million led by Acre Venture Partners, CEOs Noah Craft and Belinda Tan told Erin exclusively Thursday.

Plus: Thursday's Pro Rata, on SAP's sale process for its Qualtrics stake.

4. From Science 37 to People Science

Illustration of a large cap mushroom inside of a pill bottle. 

Angle Health's $58 million Series A round will get the tech-enabled insurance carrier to profitability, CEO Ty Wang told Claire on Wednesday.

Why it matters: Unit economics — like a path to breakeven — are becoming increasingly significant for early-stage health tech companies and their investors.

Plus: Wednesday's Pro Rata, on Hipgnosis' acquisition of Justin Bieber's publishing and recording rights.

5. Angle Health raises $58M

Illustrated collage of a hundred dollar bill with a red cross and various shapes

Happy Friday, Health Techies! Here's your digest of this week's news.

But first, a quick bite on Rockley Photonics' bankruptcy filing. 

That's all for this week. Catch you Monday!

🙏 Thanks for reading, and extra thanks to newsletter editor George Moriarty and copy editor Brad Bonhall. Please ask your friends and colleagues to sign up.

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January 27, 2023

1. Rockley Photonics files for bankruptcy