COMPASS Pathways plc (Nasdaq: CMPS) has much less cash on hand than it did a year ago and had about US$3 million more net losses last quarter than Q1, 2022.
The United Kingdom-based psychedelics company announced its financial results for the quarter ending March 31 on Thursday, reporting a US$117.1 million cash position — a 52 per cent decrease year-over-year and an 18.2 per cent drop from the previous quarter.
R&D expenses totalled US$19 million for the three months ending March 31 this year, compared to US$15.4 million in the same period of 2022. The company says the US$1.4 million increase can be attributed to higher external development expenses.
General and administrative expenses for the three months ending March 31 were US$12.8 million, up from US$10.1 million in the same period of 2022.
The increase can be attributed to a US$2.2 million rise in personnel expenses due to increased headcount, a US$0.9 million increase in facilities and other expenses and a US$0.5 million increase in non-cash share-based compensation primarily due to an increased number of employees.
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The company also provided an update on its recent activity and progress made with its COMP360 psilocybin drug.
“Our phase 3 pivotal trials in treatment-resistant depression are now underway and on track, with treatment being administered to patients across numerous sites,” said the company’s CEO Kabir Nath.
“We have also made important progress in laying the commercial groundwork for COMP360, with the recent acceptance by the American Medical Association of a Current Procedural Terminology (CPT) III code to describe the support services required in its administration,” added Nath. The code is expected to take effect when it is published on January 1 next year.
What are Current Procedural Terminology (CPT) III codes and why are they important? Hear from our CEO, Kabir Nath and SVP of Patient Access and Medical Affairs, Dr Steve Levine on what a CPT III code approval means for psychedelic therapies. pic.twitter.com/Hjtfi0OICX
— COMPASS Pathways (@COMPASSPathway) May 9, 2023
The company currently has a Phase III program underway on its COMP360 psilocybin drug comprised of two trials that are expected to yield top-line data next summer and in mid-2025.
COMPASS currently has two ongoing clinical trials with its psilocybin drug for the treatment of PTSD and anorexia nervosa as well.
In November last year the New England Journal of Medicine published positive results from the company’s Phase 2B trial on COMP360 for treatment-resistant depression.
Other psychedelics companies based in the United Kingdom include Beckley Psytech and Awakn Life Sciences Corp.(NEO: AWKN) (OTC: AWKNF).
COMPASS shares dropped by 3.29 per cent Friday to US$8.24 on the Nasdaq Stock Exchange.
rowan@mugglehead.com
