The Wall Street Journal has reported that the Drug Enforcement Administration (DEA) opened an investigation into digital therapeutic provider Done Global Inc.’s prescribing practices for controlled substances.

Done’s practices had previously been the subject of conversation when in March 2022, the Wall Street Journal reported that employees at the company felt uncomfortable with the company’s aggressive prescribing practices. 

A spokesperson for Done Global Inc., however commented that no official notice was given by the DEA or any other federal agency. 

Analyst QuickTake: News relating to both Done Global Inc. and its competitor Cerebral, who is currently under investigation by the DEA, Department of Justice , and the Federal Trade Commission , could be a blow to the telehealth industry that is currently lobbying for the Senate to extend Telehealth waivers beyond the “Public Health Emergency.” These waivers, such as access to prescribed controlled substances after only a virtual consultation, were allegedly misused by Done and Cerebral. Such incidents could delay the Senate extending the waivers outright past their slated expiry in January 2023 and might bring about additional investigations into how best to proceed legislatively, which in turn could result in the waivers lapsing.