[January 16, 2018]

Magellan Health Continues Innovation and Efforts to Improve Outcomes for Patients with Substance Use Disorder

Magellan Health, Inc. (NASDAQ: MGLN) has long been the national leader in the use of digital innovation to help those struggling with various medical and behavioral conditions, including Substance Use Disorders (SUD). As a pioneer in the use of digital therapeutics and computerized cognitive behavioral therapy (CCBT), Magellan (News - Alert) has engaged in a new initiative designed to measure clinical outcomes in patients with SUD by leveraging reSET^®, the first ever FDA cleared prescription digital therapeutic from PEAR Therapeutics.

The pilot program will enroll 250 patients with SUD and offer each patient a 12-week course of reSET^® therapy. The collaboration aims to examine patient abstinence and program retention through increased engagement and therapy adherence. The pilot will use advanced data analytics generated through the reSET^® therapy and accompanying clinician dashboards to more effectively provide technical support and clinical outreach to both treatment providers and their patients. Magellan will also work with PEAR to develop a series of publications highlighting the operational, economic and clinical results of this pilot program.

Magellan believes this pilot will help support the broader strategy to engage consumers in ways that match the best of new and traditional methods to drive optimal outcomes. This pilot will be important to help understand the value such FDA approved solutions bring to the healthcare market, as well as the operational requirements needed to support digital therapeutics in the future.

"As a national leader in providing behavioral health and pharmacy services, Magellan is committed to bringing innovative, member-centric programs to the marketplace," said Maria Lopes, M.D., chief medical officer at Magellan Rx Management. "This prescription digital therapeutic alternative offers physicians and members an evidence-based, non-drug treatment option, which is critical when you consider our nation's current challenges with substance use. Industry collaborations like this allow us to rethink the way treatment is delivered and offer practical solutions to meet the complex needs we face today."

According to the Substance Abuse and Mental Health Services Administration (SAMHSA), approximately 20.2 million adults have a type of SUD in the United States. Cognitive behavioral therapy, such as reSET^®, is widely recognized as an important component of an overall treatment regimen for SUD.reSET^® is a 12-week duration, FDA-cleared prescription digital therapeutic to be used in conjunction with standard outpatient treatment for substance use disorder related to stimulants, cannabis, cocaine, and alcohol.

This product combines patient-facing interventions and assessments via a mobile device, with clinician-facing dashboards and data analytics on the back-end. reSET^® has been shown in clinical studies to increase abstinence from a patient's substances of abuse during treatment and increase patient retention in the outpatient treatment program. reSET^® provides access to self-reported substance use, triggers, cravings and outcomes to the patient's medical provider.

"This is an important collaboration for PEAR as we seek to bring reSET to patients with SUD," said Corey McCann, M.D., Ph.D., president and chief executive officer of PEAR Therapeutics. "We believe that prescription digital therapeutics hold great promise in improving patient outcomes across a wide range of central nervous system disorders including psychiatry, neurology and pain, and will become a vital part of tomorrow's treatment paradigm across all disease areas. Collaborating with a company like Magellan will help PEAR get this innovative solution to patients who need it most."

About Magellan Health: Magellan Health, Inc. is a leader in managing the fastest growing, most complex areas of health, including special populations, complete pharmacy benefits and other specialty areas of healthcare. Magellan supports innovative ways of accessing better health through technology, while remaining focused on the critical personal relationships that are necessary to achieve a healthy, vibrant life. Magellan's customers include health plans and other managed care organizations, employers, labor unions, various military and governmental agencies and third-party administrators. For more information, visit MagellanHealth.com.

About PEAR Therapeutics: PEAR Therapeutics is the leader in FDA-cleared prescription digital therapeutics. The company's approach is to integrate clinically-validated software applications with previously approved pharmaceuticals and treatment paradigms to provide better outcomes for patients, smarter engagement and tracking tools for clinicians, and cost-effective solutions for payers. PEAR's lead product, reSET^®, is an FDA-cleared 12-week prescription therapeutic for the treatment of Substance Use Disorder (SUD) to be used as an adjunct to standard, outpatient treatment. PEAR's product development pipeline includes reSET-O™ for opioid use disorder (OUD) and additional prescription digital therapeutics in schizophrenia (THRIVE™), combat posttraumatic stress disorder (reCALL™), general anxiety disorder (reVIVE™), pain, major depressive disorder, and insomnia, for which PEAR intends to obtain FDA clearance. For more details, please see www.peartherapeutics.com.

About Prescription Digital Therapeutics: Prescription digital therapeutics are clinically validated, FDA-cleared software applications that demonstrate safety and efficacy in randomized clinical trials to improve patient outcomes. They usually include patient-facing applications, clinical assessment and outcomes tracking, clinician monitoring dashboards and HIPAA-compliant data storage.

reSET^® Indications for Use: reSET^® is intended to provide cognitive behavioral therapy, as an adjunct to a contingency management system, for patients 18 years of age and older who are currently enrolled in outpatient treatment under the supervision of a clinician. reSET^® is indicated as a 12-week prescription-only treatment for patients with substance use disorder (SUD), who are not currently on opioid replacement therapy, who do not abuse alcohol solely, or who do not abuse opioids as their primary substance of abuse. Full prescribing information can be found at www.peartherapeutics.com.

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