Numinus Wellness Inc. (TSX:NUMI, OTC:LKYSF) has reported a big rise in first-quarter revenue as the expansion of its mental health infrastructure to 12 wellness clinics and research operations following the June 2022 acquisition of Novamind drove a strong start to its 2023 financial year.
The company grew year-over-year revenues by 618% to $5.7 million for the three months to November 30, 2022, as revenue from its Numinus Wellness Clinic Network surged by 670% to $5 million and it earned $700,000 in revenue from its Cedar Clinical Research unit. It ended the quarter with cash of $26.4 million.
"We continued to focus on driving margin expansion during 1Q 2023, through ongoing cost containment initiatives and a focus on reaching a growing number of clients,” Numinus founder and CEO Payton Nyquvest said in the results statement. “Overall, client appointments grew 13.7%, G&A (general and administrative) expenses declined 8.5%, and gross profit increased 80% from last quarter to $2.4 million in the first quarter – representing a 41.9% gross margin.”
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“We are proud of the growth and margin improvements we're seeing across our organization, and will continue to identify ways to reach profitability as soon as possible,” Nyquvest added.
During the first quarter, Nyquvest noted that Numinus successfully implemented several initiatives to increase access to psychedelic and ketamine-assisted therapy.
“We believe expanded access will not only serve to elevate Numinus' leadership position within the psychedelic industry but strongly supports the overall advancement of psychedelic medicine for the treatment of mental health,” he said. “With our strengthened network of 12 wellness clinics and research operations firmly in place following our acquisition of Novamind, we leveraged our robust integrated mental health infrastructure to enhance our service offerings, driving a strong start to 2023.”
The company also developed a whole mushroom psilocybin-containing tea bag, EnfiniTea, which Nyquvest said has demonstrated a more consistent dosing and longer shelf stability than other natural psilocybin-mushroom products.
“Our new clinical trial application for experiential psilocybin-assisted therapy training research will use our EnfiniTea for trial dosing, making this one of the first clinical trials globally to be conducted with whole Psilocybe mushrooms to assess their safety,” he continued. “This will also be one of the first training programs with the option to participate in an experiential trial for practitioners looking to expand their psychedelic-assisted therapy education.”
In addition, the company launched Ketamine-assisted Therapy (KAT) at its Toronto location, introduced a wider assortment of ketamine-assisted therapy options at its Montreal clinics and launched KAT for Chronic and Serious Illness at its Utah clinics.
“Research continues to support the efficacy of these therapies and we are committed to continuously enhancing our service offerings to make psychedelics available to those in need,” Nyquvest said.
Other operational highlights included:
- During Q1 2023, Numinus completed more than 19,774 client appointments – including one-on-one and group therapy sessions, neurology-related appointments, paid group programs, Ketamine-assisted psychotherapy (KAT), Transcranial Magnetic Stimulation (TMS) and Ketamine/Spravato medicine appointments, representing a 14% increase in clinic appointments compared to more than 17,000 appointments in Q4 2022;
- At the end of Q1 2023, Numinus had 138 practitioners providing client treatments through its wellness clinics and virtual services, a 13% increase from the beginning of the quarter;
- On September 13, 2022, Numinus launched a new financing option for clinic patients in Canada. This new payment option will increase the accessibility of its traditional therapy and Ketamine-assisted therapy to a wider client population; and
- On October 5, 2022, the company announced that Numinus Bioscience has developed a psilocybin-containing tea bag for use in clinical research and, if appropriate regulatory approvals are granted, eventual treatment of clients in psychedelic-assisted therapy.
Numinus Wellness helps people to heal and be well through the development and delivery of innovative mental health care and access to safe, evidence-based psychedelic-assisted therapies.
Contact the author at stephen.gunnion@proactiveinvestors.com