MindMed's 2023 Financial Results And Business Recap: Milestones Amid Rising Expenses

Mind Medicine (MindMed) Inc. MNMD announced its financial results for the year ended December 31, 2023 along with a business update.

Numbers:

• Cash and cash equivalents totaled $99.7 million by Dec. 31, 2023, an almost 30% reduction compared to the $142.1 million held by December 31, 2022. 
• Yearly net cash used in operating activities was $64.4 million, 28% more than that used in the former fiscal year ($50.1 million.)
• Yearly R&D expenses reached $52.1 million, also an over 40% increase compared to the prior fiscal year ($36.2 million.)
• Yearly G&A expenses were $41.7 million, a 38% rise from the $30.2 million spent the prior fiscal year.
• Yearly net loss of $95.7 million, a 68% YoY rise as compared to $56.8 million for the year ended Dec. 31, 2022.

See Q3 results.

Management Comments

Despite the significant drop in its cash position YoY, the company still expects its available cash and cash equivalents together with its committed credit facility and the achievement of "certain milestones" to unlock additional capital would altogether fund operations into 2026.

Regarding R&D expenses, MindMed management stated that the $15.9 million YoY increase primarily owes to increases in clinical research and product expenses (reportedly $16.1 million) around the Phase 2b LSD clinical trial, as well as internal personnel costs ($2.6 million) from increasing research and development capacities. These costs were partially offset by a decrease in expenses from the R-(-)MDMA program ($0.7 million,) a decrease in expenses related to external R&D collaborations ($0.8 million,) and a decrease in expenses related to preclinical activities and opioid withdrawal program MM110 ($1.2 million.)

Meanwhile, the general and administrative’s $11.5 million increase is said to be owed "to professional services fees and expenses related to the proxy contest in connection with our 2023 annual general meeting of shareholders" as well as "costs to support the growth of our business."

"2023 was a highly productive year for MindMed, which concluded with positive Phase 2b results for MM120 in the treatment of adult patients with GAD," said CEO and director Rob Barrow. "We believe the initial data we shared validates our scientific understanding of MM120's mechanism of action and shows the potential to have a best-in-class product profile compared to today's standard of care." 

In a virtual investor event dated March 7, the company is set to share expected 12-week safety, efficacy and durability data on the Phase 2b study, as well as results from its Phase 1 bridging trial supporting further development of an oral dissolving tablet formulation of the same drug candidate. 

Also Read Groundbreaking Study: LSD Tartrate Reduces Anxiety Effectively, Says MindMed

"Looking further into 2024, we anticipate several additional milestones, including one-year follow-up results from an investigator-initiated Phase 2 clinical trial of lysergide in anxiety disorders conducted by our collaborators at University Hospital Basel. We will be working closely with the FDA to finalize our Phase 3 development program for MM120 in GAD and expect to hold our End-of-Phase 2 meeting with the FDA in the first half of the year. This is intended to enable the initiation of our Phase 3 clinical program in the second half of the year," Barrow concluded.

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