Reunion Neuroscience's Q4 And Full Year 2023 Financial Results, To Close Take-Private Deal In Q3

Clinical-stage psychedelics firm Reunion Neuroscience Inc. REUN reported fiscal results for the fourth quarter and year ended March 31 plus corporate updates.

Here's a breakdown of the report:

• Cash and cash equivalents of $20.9 (CA$27.7) million as of March 31, compared to $48 million held on the same date in 2022.

• R&D expenses of $3.3 and $9.8 million for the three and twelve-month periods, compared to $1.7 and $5.3 million for the same periods in 2022. 

• G&A expenses of $3 and $9.8 million for the three and twelve-month periods ended March 31, 2023 compared to $2.3 and $8.3 million for the same periods in 2022. 

• Cash used in operating activities totaled $21 million for the twelve months of FY2023 compared to FY2022's $33.3.

• Net loss from discontinued operations of $7.8 million for the twelve-month period and no loss during the three-month period, compared to $27.8 and $6.2 million losses for the same periods in 2022, respectively.

• Net loss from continuing operations of $28.7 million (or $2.47 per share) and $4.9 million (or $0.42 per share) for the twelve and three month of FY2023 compared to $13.4 million ($0.23 per share) and $4.4 million ($0.08 per share) for the corresponding FY2022 periods.

Clinical And Corporate Update

Reunion’s lead asset RE104, a proprietary novel tryptamine 4-OH-DiPT prodrug, is being developed as a potential treatment for Postpartum Depression (PPD.)

A Phase 1 final analysis recently presented at the American Society of Clinical Psychopharmacology (ASCP) annual meeting showed:

• The compound was well tolerated and showed robust pharmacodynamic (PD) effects at 30mg or larger doses, closely aligned with its prodrug 4-OH-DiPT (isoprocin)’s profile.

• Drug effect and the mystical effect questionnaires scores indicate the potential for therapeutic effect.

• Mean duration of experience at these dose levels was 3.7 hours, shorter than psilocybin while sustaining the same intensity and quality of experience, with an adverse event profile similar to psilocybin’s (no serious adverse events.)

The data informed the dose selection of 30mg RE104 (33mg RE104 HCl) for a randomized, placebo-controlled Phase 2 trial in women with moderate to severe PPD set to begin this year.

The company's RE200 molecules series, also under development, includes preclinical compounds with a similar structure to classic psychedelics and an enhanced receptor selectivity (toward 5HT2A and devoid of 5HT2B receptor agonism.)

Some months after Reunion entered the Nasdaq compliance period, it announced the agreement toward a take-private transaction by biotech investment firm MPM BioImpact in an all-cash deal valued at approximately $13.1 million.

The financial risks reported in Reunion's annual form published June 29 include concerns around future expenses and expected losses as well as its ability to generate revenues to support goals including those related to its financial guarantees for associate company Field Trip H&W’s FTHWF leases.

See Also: In-Clinic Ketamine Businesses Are Shutting Down All Across The US, A Rising Trend?

Meanwhile, IP risks include the ongoing litigation with psychedelics biotech Mindset Pharma MSSTF over the patenting of the Novel Chemical Entity as well as risks related to third-party licenses.

Under the terms of the take-private transaction, Reunion shareholders will be entitled to receive $1.12 in cash for each share held immediately prior to the effective transaction time, currently contemplated to close in the third quarter of 2023 and prior to which a special shareholder meeting is set to be held on July 12.

Photo: Benzinga edit with photo by Commons and Pexels.