COMPASS Pathways Q2 2023: $148.2M Cash Position, Steady Quarter And 'Strong Progress Across The Business'

Psychedelics biotech COMPASS Pathways’ CMPS consolidated unaudited financial results for the second quarter 2023, ended June 30 are as follows:

• Cash and cash equivalents totaled $148.2 million, compared to $143.2 million held in Dec. 31, 2022, and considering this 2023 quarter’s financing for a total $55.9 million in net cash.

• Specifically, Q2 financing included $26.9 million (net) through ATM facility and $28.8 million (net cash) through a term loan agreement with Hercules Capital HTGC.

• Long-term debt of $28.1 million compared to zero on Dec. 31, 2022.

• The three and six months ended June 30, 2023 brought on a net loss of $28.3 million (or $0.62 loss per share) and $52.5 million (or $1.19 per share); vs. the prior year’s same periods net losses of $21.0 million (or $0.50 loss per share) and $42.2 million (or $1.00 per share), respectively.

• R&D expenses for the three and six months were $19.8 million and $38.9 million, respectively, compared with $15.9 million and $31.3 million during the same periods in 2022. 

• G&A expenses totaled $12.8 million and $25.6 million respectively for the three and six months ended 30 June 2023, compared with $11.3 million and $21.4 million in the same 2022 periods.  

• The period’s cash in operating activities is expected to be between ($2 million) and $18 million, including a to-be-received UK R&D tax credit and full-2023’s somewhere between $80 million and $90 million.

Pipeline And Business

CEO Kabir Nath says results show “another quarter of steady, strong progress across the business,” including the ongoing Phase 3 COMP360 psilocybin trials in Treatment-Resistant Depression (TRD) and “important progress” in laying the commercial groundwork for COMP360 (see the new CPT III code for support services during psychedelics’ administration). 

All this accompanied by the FDA’s recently issued guidance on psychedelic drug development, which Nath says represents “an important validation” of COMPASS’ area of science. 

“The cash received from the draw down from our debt facility with Hercules and sales of equity through our ATM program lengthened our cash runway significantly and allows us to continue to invest in our COMP360 development programs at full speed,” he explained.

Besides the two ongoing pivotal Phase 3 trials of COMP360 in TRD, the proprietary synthetic psilocybin is also being assessed in Phase 2 trials for anorexia nervosa and PTSD as well as in investigator-initiated and open-label trials, such as a SSRIs-psilocybin compatibility which recently delivered promising outcomes.

Photo: Benzinga edit with photo by Raimundo79 and Sergey Nivens on Shutterstock.