Cerebral to stop offering most controlled substances to patients

Bloomberg: Cerebral Inc, the online mental health startup that is under a federal investigation into its prescribing practices, said its clinicians would no longer prescribe most controlled substances.

“This decision was spearheaded by our clinical and regulatory teams, and we will be releasing more details about how we will do this safely and in best interests of our patients and clinicians,” a company spokesman said.

The announcement came less than two weeks after the company told employees that it would pause the writing of new prescriptions for controlled substances that treat attention deficit/hyperactivity disorder.

Cerebral, which has been backed by investors including SoftBank, has been valued at $4.8 billion but has recently faced criticism of its advertising and prescribing practices. In a Bloomberg Businessweek story that was published in March, dozens of the company’s clinicians and other staff expressed fears that the company was over-prescribing the amphetamines used to treat ADHD.

Agents from the Drug Enforcement Administration have spoken with at least two Cerebral employees about its handling of controlled substances, according to two people familiar with the conversations.

In an email sent to employees, Cerebral Chief Executive Officer Kyle Robertson said the decision to end the prescribing of controlled substances was the result of “the evolving landscape around the accessibility of mental healthcare, and the ability for patients to return to an in-person or hybrid care model.”

A copy of the email was reviewed by Bloomberg News. Robertson wrote that Cerebral will discontinue controlled substance prescriptions for new patients beginning on May 20 and for existing patients on October 15. He said Cerebral will continue to prescribe Suboxone and Narcan, when appropriate.