Numinus Wellness Inc announced that its third quarter 2023 revenue surged by 713.3% year-over-year to C$6 million, while rising 12.6% sequentially, boosted mainly by growth in client appointments and the strong performance by its research site Cedar Clinical Research.
The mental health care company also saw its gross profit improve by 1051.6% year-over-year to C$2.1 million, mostly as a result of more client appointments and higher clinic utilization rates.
"We're on the verge of a pivotal turning point for the psychedelics sector – with MDMA-assisted therapy on a path to FDA approval, long-form psychedelic-assisted therapy receiving an insurance pay code, and cultural awareness and support for these treatments building,” Numinus Wellness CEO Payton Nyquvest said in a statement.
"We took meaningful steps during our fiscal third quarter to best align our business with future opportunities related to the expected approval of MDMA-assisted therapy, including launching the Numinus Network licensing program, focusing capital and people resources towards revenue-producing business lines, and preparing for expanded insurance payor coverage of psychedelic-assisted therapies,” he added.
Nyquvest noted that collectively, the initiatives are expected to improve the productivity of the company’s clinics and training offerings, drive higher long-term margins, and extend its cash runway, with the impact of the changes anticipated to start being demonstrated in the next few months.
Numinus added that operating expenses totalled C$9.2 million during the quarter, including $0.6 million related to staff reductions, with all cost-saving measures targeted to reduce annualized cash expenses by about $4.2 million and extending the company's cash runway past anticipated MDMA-assisted therapy approval.
Numinus ended the quarter with a total cash balance of C$13 million and working capital of C$12.9 million as of May 31, 2023.
Numinus Wellness is a mental health care company advancing innovative treatments and safe, evidence-based psychedelic-assisted therapies.
Contact Sean at sean@proactiveinvestors.com