Compass 2020 Earnings Call: Strong Cash Positions And Advancing R&D

Compass Pathways CMPS, the first and only psychedelics company to list on a major U.S. stock exchange, released its financial results for the fourth quarter and year-end 2020.

The company is currently recruiting patients for a phase IIb clinical trial of COMP360, a proprietary molecule derived from psilocybin, the active psychedelic found in “magic mushrooms.”

Compass is currently leading the way in the path to legalization of psilocybin therapy for treatment-resistant depression.

The trials, which are being held in 22 sites across 10 countries, will show results by the end of this year.

Strong Cash Position With Growing R&D

As a biotech company working to develop therapies using a scheduled substance, Compass is not generating revenue yet. This is a situation common to most companies in the psychedelics sector.

Compass’ finances reflect the growing investor excitement around psychedelic therapies that sprouted during 2020, as well as its successful NASDAQ IPO last September.

Compass reported a net loss for the quarter of $18.8 million, and $60.3 million for the whole year.

Of these expenses, $4.5 million went to R&D in the fourth quarter and $23.4 million yearly. That is almost double from the sum spent on R&D during 2019 ($12.6 million), reflecting an increase in research efforts.

Cash position by the end of 2020 remained stable at $190.3 million, against $196.5 million by the end of the third quarter. This marks a significant growth in cash holdings from $24.9 million at the end of 2019.

Quarterly Achievements

Aside from the ongoing psilocybin trials, the company highlighted several recent accomplishments.

These include the publishing of a paper on therapist training for psilocybin therapy, which came out on Frontiers in Psychiatry in February.
In January, Compass launched a center of excellence in collaboration with The Sheppard Pratt Institute for Advanced Diagnostics and Therapeutics in Baltimore, Maryland. The center will serve as a “clinic model,” studying and building the best therapy models for psychedelics treatment. It will also work as a site for clinical trials and a laboratory for innovation.