Compass Pathways Research, Clinical Trials Buoyed by Influx of New Funds

Mental health biotech firm Compass Pathways (Nasdaq: CMPS) reported its third-quarter financials ending Sept. 30, as well as the status of ongoing clinical trials. The London-based company is advancing trials of its flagship COMP360 therapy, a psilocybin-based treatment for mental health disorders. CEO Kabir Nath emphasized the progress in European clinical trial recruitment for phase 3 programs, noting the reporting of initial data by next summer for its treatment-resistant depression study. “The August financing, led by specialist biotech investors, provides a strong financial foundation that permits Compass to move forward confidently with our clinical programs, as well as all supporting studies for a potential new drug application filing with the FDA,” Nath said in a statement. “We also continue to invest in our pre-commercial work to ensure we are prepared for a successful COMP360 launch, if approved.” With two pivotal trials, COMP005 and COMP006, underway, Compass anticipates releasing preliminary results for its treatment-resistant depression treatment in summer 2024 and for a subsequent study by mid-2025. A phase 2 study for post-traumatic stress disorder is also expected to unveil top-line data before year’s end. The firm’s financials were buoyed by that August private placement garnering $125 million, with the potential to secure an additional $160 million if warrants issued are fully exercised. The investment round was specifically highlighted as a vote of confidence by specialist biotech investors, the company noted. Compass reported $248 million in cash and cash equivalents, up from $143.2 million at the end of 2022. The company’s financial maneuvers, including a term loan and private placement, have extended its operational runway into late 2025, despite reporting a net loss of $33.4 million for the quarter. That’s a meaningful increase from the net loss of $18.4 million recorded during the same period last year. The rise in net loss reflects Compass’ intensified investment in research and development for its psilocybin therapy, particularly in large-scale clinical trials. Still, the loss is seen as a strategic investment in the potential blockbuster therapy, which the company believes will have a huge impact on mental health treatment if approved. The company’s R&D expenses surged to $21.5 million for the quarter. G&A expenses saw a slight uptick due to higher facilities costs and share-based compensation. Looking ahead, Compass Pathways adjusted its fourth-quarter financial outlook, projecting operating cash use between $9 million and $15 million, partially dependent on the UK’s R&D tax credit. The post Compass Pathways Research, Clinical Trials Buoyed by Influx of New Funds appeared first on Green Market Report. psilocybin therapy depression investors financing private placement nasdaq invest compass fda research

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