Compass Releases Q1 Earnings: Strong Cash Position For Psilocybin R&D Efforts

Compass Pathways CMPS, a company researching psychedelics for mental health treatment, released its financial statement for the first quarter of 2021.

The company, currently pushing psilocybin through a phase 2b clinical trial, highlighted the issuing of two new patents and a post-quarter equity financing round of $144 million.

“Our recent financing gives us additional resources to work even faster and to expand our efforts, grow our team and focus on developing new indications, new compounds and new technologies, building on our leadership position in psilocybin therapy and mental health care,” said Compass CEO, chairman and co-founder George Goldsmith.

Business Milestones: Compass expects results from its phase 2b clinical trial of COMP360 to deliver results by the end of 2021.

COMP360 is a proprietary formulation of synthetic psilocybin, which is the active ingredient in so-called magic mushrooms. The company is developing protocols for its application in treatment-resistant depression.

Data on COMP360 was published in April in the New England Journal of Medicine, from an independent study performed at the Imperial College of London, contrasting and comparing it with traditional antidepressants, with positive results.

In March, the company was granted two patents, one for the rights to COMP360 as a crystalline psilocybin formulation and methods of using it for the treatment of major depressive disorder.

Another patent covers oral dosage forms of crystalline psilocybin and methods for treating major depressive disorders.

Financials: Compass reported a net loss for the three months ending March 31 of $12.7 million, or $0.35 loss per share, compared with $8.6 million for the same period in 2020.

As the company focuses on putting psilocybin through clinical trials to receive FDA approval, most efforts are connected to R&D. Expenses in this area were $6.9 million for the quarter. General and administrative (G&A) expenses were $6.7 million.

Compass’s cash position was $179.5 million as of March 31 compared with $190.3 million on December 31, 2020. 

However, the company completed a new raise on May 4, 2021, with a public offering of 4 million American Depositary Shares at a price of $36.00 per share for total gross proceeds of $144 million.