A forerunner in ‘smart pills’ adopts a new tack as key pharma partnership unravels

t was supposed to be a showcase for the way in which technology can revolutionize how some patients take their medications — and ultimately improve health outcomes. It has proven far more complicated.

Proteus Digital Health, a Silicon Valley company, raised close to $500 million and soared to a valuation of $1.5 billion on the promise that its sensor technology could be used to monitor whether patients with a wide range of health conditions have taken their pills. Then, late last year, the company’s funds fell dangerously low.