The two companies submitted the system as a new drug application (NDA) with the FDA in September 2015, and the Agency now declined to approve it.
The company plans to drive increased adoption of its Digital Medicine offering, called Proteus Discover, by partnering with health system customers.
As part of the deal, Gloria will also get an 18-month period of exclusive negotiation with Proteus to establish a joint venture company in China.
Proteus' offering will be used to improve health outcomes for patients with long-term chronic conditions who are having challenges managing their medications.
A drug/device product combines Otsuka's ABILIFY for serious mental illness, embedded with the Proteus ingestible sensor in a single tablet to record ingestion.
When used with a medication, the Ingestible Sensor marks actual intake time, which is a quantifiable event that has allowed FDA to grant the expanded indication.
The platform is made to help health sciences organizations more effectively track and manage the use of medication during clinical trials.
The device is touted as the "only system that supports the 24-hour optimization of athlete recovery and daily physiologic load."
The new money will enable the company to advance the manufacturing and commercialization of its digital medicines.
The new money will be used to advance the company's plans to commercialize digital medicines at scale and further demonstrate benefits of its offering.