Braxia Scientific Corp. (CSE:BRAX, OTC:BRAXF) has announced its results for the first quarter of fiscal 2023 with an increase in the number of treatments driving a 13% quarter-on-quarter rise in revenue.
The medical research and telemedicine company, which provides ketamine and psilocybin treatments for depression and related disorders, also said it launched KetaMD in the US, increasing access to treatment for mental health patients.
"We are proud to have launched KetaMD in the US so that we can begin addressing the needs of millions lacking access to innovative treatments for mental health disorders such as depression, anxiety, bipolar disorder and post-traumatic stress disorder (PTSD)," said Dr Roger McIntyre, CEO of Braxia Scientific in the results statement.
READ: Braxia Scientific enters US telemedicine industry with acquisition of mental health platform KetaMD
"We have established the infrastructure and clinical best practices to ensure proven treatments, such as Ketamine, are affordable and delivered safely, securely, reliably, and quickly to achieve the best outcome for patients. As we continue to expand KetaMD across multiple US states we are also committed to advancing new and innovative treatments via our clinical research trials leveraging both our digital and in-person clinics," he added.
Revenue in the first quarter ended June 30, 2022, came in at $0.42 million, up from $0.37 million in the fourth quarter of fiscal 2022 and 2.5% higher year-on-year.
Braxia attributed the growth in revenue to an increase in the number of treatments from the administering of ketamine at the Braxia Health clinics in Ontario.
Net losses reduced to $0.97 million for the first quarter from a net loss of $1.09 million in the same period last year.
The company ended the period with cash and cash equivalents of $7.68 million, a decline from $8.6 million three months earlier after it invested cash to fund the launch of KetaMD and purchased equipment for the buildout of new clinics.
The company said it is poised for growth and innovation in 2023.
"We are executing against our strategic priorities centered on creating and increasing access to safe, affordable, ketamine treatments, and other innovative treatments, for millions impacted by mental health challenges, whether it’s in person through our clinics or at home through KetaMD,” said CEO McIntyre.
“Through our KetaMD platform, we plan to connect people who have inadequate access to mental healthcare services, trained specialists, physicians, and psychiatrists in their communities across the US.
“Our combined clinical and telemedical platform positions us to well to drive further innovation in clinical research and scaling of access to experimental therapeutics in this patient population," he added.
KetaMD platform augmented
Braxia said it plans to further augment the tools and capabilities of the KetaMD platform, including new clinical trials in the US and leveraging Braxia's growing proprietary patient dataset, with patient outcomes, to support potential future development of digital therapeutics in the management of depression and other related mental health conditions.
KetaMD is currently available in Florida with a roll-out to other key states to begin in 2022.
Braxia Health Canada continued to see steady growth during the quarter following the opening of its Kitchener-Waterloo clinic in a growing suburb near the Greater Toronto Area in Ontario.
The company said it has made progress on the buildout of its new upcoming clinic in Ottawa, while in Toronto it is working to expand capacity to support increased volumes for in-person ketamine treatments, and as the research team prepares to launch new clinical trials before the end of 2022.
To date, the company has steadily grown its ketamine program referral network across five cities.
The company said Braxia Health's research team has progressed the first phase II randomized Health Canada-approved multi-dose psilocybin trial, approved in July 2021 and launched in November 2021. The trial is expected to be completed by December 2022.
Following the preliminary positive results reported earlier this year, which demonstrated meaningful improvements in depression severity observed, Braxia expects to launch additional psilocybin-assisted trials in the coming quarters across multiple diagnostic categories.
Braxia said it granted stock options to certain of its directors, officers and employees to acquire an aggregate of 11,220,000 common shares of the company.
Each option is exercisable into one common share of the company at an exercise price of $0.08 per share, being the closing trading price of the shares on the Canadian Securities Exchange on August 26, 2022, for a five-year term expiring on August 29, 2027. One-half of the options will vest immediately and the remaining one-half will vest six months after the date of the grant.
For recently hired employees, one-third of the options will vest after six months from their start date, one-third will vest after 12 months from their start date, and the remaining one-third will vest 18 months from their start date.
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