Online mental-health startup Cerebral Inc. was just getting off the ground in early 2020 when it detected a potential problem in its business model.
The company was focused on treating people experiencing depression and anxiety, charging a monthly fee to see a nurse practitioner online for prescription antidepressants. But patients tended to cancel their subscriptions after only a few months, making it more difficult for the company to recoup advertising and other costs, according to documents reviewed by The Wall Street Journal and people familiar with the matter.
