MindMed Reports Q1 2023 Financial Results, Business Highlights, Upcoming Elections

Clinical-stage biopharma company Mind Medicine (MindMed) Inc. MNMD has reported its unaudited financial results for the quarter ended March 31, 2023, and shared the period’s business highlights.

Numbers show:

• Cash and cash equivalents totaled $129.4 million as of March 31, an amount MindMed believes will allow funding of operations into the first half of 2025.

• Quarterly operating expenses were $13.3 million, as compared to $12.9 million in the same period in 2022.

• Quarterly R&D expenses were $12.6 million, as compared to $10.2 million for the same period in 2022. The increase would primarily owe to expense increases in the MM-120 GAD clinical program.

• The quarter’s G&A expenses were $8.3 million, the same as in 2022.

• Net loss of $24.8 million, compared to $18.5 million for the same period in 2022.

CEO and director Robert Barrow says 2023 is a critical year for the company, adding it is “well positioned” to continue advancing its R&D pipeline toward near-term milestones. 

That would include key data from the ongoing Phase 2b study of LSD compound MM-120 for the treatment of Generalized Anxiety Disorder (GAD) and Phase 2a trial of repeated low-dose MM-120 in Attention-Deficit/Hyperactivity Disorder (ADHD). 

See also: MindMed Reports Full-Year 2022 Financial Results, Highlighting Anxiety & Autism Studies

MindMed is planning to initiate the first clinical trial on MDMA’s R-enantiomer drug, MM-402, for the treatment of core symptoms of Autism Spectrum Disorder (ASD) later in the year following positive preclinical results to be announced shortly.

MindMed is undergoing some turbulence at the corporate level. 

See also: MindMed CEO On Latest Positive Topline Phase 2 Data And Freedom Capital Management

With upcoming elections of directors to hold office until 2024’s annual meeting, the company recently referred to its shareholders noticing its six “highly qualified nominees” and the fact that the early investors group Freeman Capital Management (FCM) is “waging a proxy contest to take control of the company” (see Jason Najum’s analysis) through its allegedly ill-experienced nominated candidates for the board.

To that document, FCM replied with its own letter to shareholders pointing at the company’s existing board of directors and management team’s “track record of poor decision making and lack of alignment with shareholders,” which has led to “critical delays, ill-conceived and botched regulatory strategies” along with other accusations and a plan “to restore shareholder value.”

The vote is scheduled for June 15 at MindMed’s annual general shareholder's meeting.

Photo: Benzinga edit with photo by chrissmith12 and Bru-nO on Pixabay.