Braxia Scientific Corp. (CSE:BRAX, OTC:BRAXF) has announced an increase in revenues for its second quarter and the first half ended September 30, 2022, with in-clinic treatment rising by 34.5% as it continues to build on its core strengths and priorities.
The company also said it also evaluating strategic capital market opportunities to create shareholder value.
"We are executing on our vision to increase access to novel treatments such as Ketamine and Psilocybin to address mental health disorders such as depression, anxiety, bipolar disorder and post-traumatic stress disorder (PTSD)," said Dr Roger McIntyre, CEO of Braxia Scientific in a statement.
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He added: "We have invested in expanding capacity and technology across our clinical footprint to support implementation of ketamine and psilocybin treatment programs, provide best-in-class patient experience and address increasing demand.
“Our US telemedicine platform, KetaMD, is providing access to safe, virtually guided at-home ketamine treatments in Florida where 2.9 million adults have a mental health condition."
"As we move forward in 2023, Braxia's growth initiatives are driven by our established clinical infrastructure, a US telemedicine platform, ongoing clinical trials and human capital leading the industry in clinical research and best practices with 45 Braxia management-led publications to date. As we continue to build on our core strengths and priorities, we are evaluating strategic capital market opportunities to create shareholder value," Dr McIntyre concluded.
In Q2 2023, the company saw in-clinic treatments increase by 34.5% year-over-year. In the first six months of 2023, in-clinic treatments increased by 35% compared to the prior year period.
During the quarter, the company acquired KetaMD, which launched an initial pilot of its virtual ketamine treatments late in the quarter. The company expects KetaMD's revenues and profitability to increase as services and operations ramp up services, marketing and plans to forge new clinical partnerships.
The company said Q2 2023 revenue increased by 18% year-over-year to $0.46 million while for the first six months of 2023, revenues increased by 10.1% to $0.87 million compared to the prior year period.
The company's net loss was $2.2 million for its second quarter ended September 30, 2022, compared to a net loss of $1.7 million for the three months ended September 30, 2021. Net loss during the quarter included non-cash share-based compensation of $0.38 million and $0.25 million from the fair value change of convertible debenture under the acquisition of KetaMD.
In first six months of 2023, its net loss was $3.1 million compared to a net loss of $2.8 million in the prior year period. Net loss included non-cash share-based compensation of $0.6 million.
As of end-September 30, 2022, cash and cash equivalents were $5.2 million and working capital was $2.32 million.
The company said it is in discussions with various parties to explore sources of funding and partnerships to further its growth initiatives, including the expansion of KetaMD.
Clinical Ketamine treatment program
During the quarter, Braxia Health clinics continued to steadily grow its ketamine program referral network across five cities.
The company made progress on expanding the capacity of its clinic footprint, completing the buildout of its new clinic in Ottawa and continues to build out its newest flagship Toronto clinic.
The new clinic commenced ramping operations, including adding specialized nursing, medical and psychiatry personnel late October and delivered initial treatments in November.
Additionally, it invested in establishing a new technology platform across its clinical platform that will provide implementation capabilities for increasing in-person treatments and virtual treatments, while also driving efficiencies and an enhanced patient experience.
With the increased capacity, Braxia health is also working to expand capacity to support increased volumes for ketamine and psilocybin treatments, as the research team prepares to launch new clinical trials in the coming months.
Psilocybin-assisted therapy treatment programs
Braxia Health has received several approvals to provide psilocybin therapy through the federally approved Special Access Program (SAP).
The company is now accepting referrals for psilocybin therapy following the implementation of a streamlined process to allow for improved efficiencies in applying through the SAP and providing this treatment in Braxia clinics. Three clinics are now set up to provide psilocybin therapy with specially designed psilocybin dosing rooms in Toronto, Mississauga and Ottawa.
Braxia Health's research team completed enrollment of its final participant for Braxia's first psilocybin trial, with the trial expected to be completed before May 2023. Braxia progressed the first Phase II randomized Health Canada-approved multi-dose psilocybin trial, approved in July 2021 and launched in November 2021.
Preliminary positive findings have been reported in numerous peer-reviewed abstracts at local, national and international conferences including the Global Psychedelic Summit, Canadian Psychiatric Association and American College of Neuropsychopharmacology. A novel finding from this study has been accepted for publication in the American Journal of Psychiatry.
The company expects to launch additional psilocybin-assisted trials in the coming quarters across multiple diagnostic categories.
Braxia management also continued its Psilocybin Therapy Training Program with the first cohort successfully graduating independently licensed multidisciplinary therapists from diverse training programs (family medicine, psychiatry, psychotherapy, spiritual care, social work, nursing).
A second cohort completed enrollment in the training program with graduation anticipated for late 2023. These therapists will provide psilocybin therapy within Braxia's current and future clinical trials along with increasing SAP patient treatments.
These clinical research initiatives present multiple opportunities for future revenue generation. It is anticipated that no near-term revenue will be generated from these clinical research initiatives, the company added.
KetaMD
During the quarter, Braxia closed its acquisition of KetaMD and launched its end-to-end telemedicine platform in Florida.
KetaMD utilizes leading digital and mobile technology to provide safe, affordable, and potentially life-changing at-home ketamine treatments for people suffering from depression and related mental health conditions.
Braxia Scientific is a medical research and telemedicine company with clinics that provide innovative ketamine treatments for persons with depression and related disorders.
Contact the author at jon.hopkins@proactiveinvestors.com