COMPASS Pathways, a mental health care company focused on advancing its COMP360 psilocybin therapy for treatment-resistant depression (TRD), posted an earnings beat for the first quarter which sent its shares higher.
For the quarter ended in March, the company reported a loss of $24.2 million or a loss per share of $0.57, compared to a loss of $21.2 million or a loss per share of $0.50 in the comparable quarter in 2022. Analysts had forecast a loss per share of $0.68.
The company is yet to generate any revenue and it noted that it does not expect to do so from the sale of therapeutic candidates in the foreseeable future.
In a statement accompanying its 1Q results, COMPASS CEO Kabir Nath updated investors on the company’s Phase 3 trial of COMP360 for TRD.
“Our Phase 3 pivotal trials in treatment-resistant depression are now underway and on track, with treatment being administered to patients across numerous sites,” Nath said.
“This is significant progress, indicating that with the necessary approvals and licenses in place, these sites can now focus completely on training and recruitment.”
COMPASS’ Phase 2 trials for COMP360 in anorexia nervosa and post-traumatic stress disorder are ongoing, as are investigator-initiated studies across a number of additional indications, the company noted.
Nath also highlighted that the company had made important progress in laying the commercial groundwork for COMP360 during 1Q, with the recent acceptance by the American Medical Association of a Current Procedural Terminology (CPT) III code to describe the support services required in its administration.
“It has been a quarter of steady, strong progress, including productive, ongoing dialogue about the design of our pivotal trials with the Food and Drug Administration,” Nath said in a statement.
Looking ahead, the company said it expects to spend $22 million to $30 million on its operating activities in the second quarter, with its full-year spend anticipated to be in the range of $85 million to $110 million.
“We believe that our existing cash and cash equivalents, together with the net proceeds from sales of the company’s American Depository Shares through May 10, 2023, will be sufficient for us to fund our operating expenses and capital expenditure requirements for at least the next 12 months,” the company said in a regulatory filing.
“We have based this estimate on assumptions that may prove to be wrong, and we could exhaust our available capital resources sooner than we expect.”
Shares of COMPASS were trading up 1.3% at US$8.70 following the release of its results.
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