Late Friday after the markets closed, Mydecine Innovations Group (NEO: MYCO) (OTC: MYCOF) reported back-to-back annual results that showed the company struggling to find ground amid growing debt.
The Canadian company, which focuses on researching and developing psilocybin-based products, reported financial results and company highlights for the years ending December 31, 2022, and 2021
Mydecine said it has been creating treatments for mental health and addiction disorders through its drug development strategy, reaching several milestones in 2022, including identifying promising indications for “treating global populations in need,” the company said in a statement.
Mydecine reported a net loss of C$11.56 million, with a shareholder’s loss per share of C$1.34 at the end of 2022. This is an improvement from the same period in 2021, where losses totaled C$28.89 million, with a loss per share of C$6.17 — which included a loss of C$279,623 from discontinued operations.
“We’ve spent a significant amount of time refining our core focus to be sustainable, elegant, and efficient while still retaining the blue sky that we believe the various drugs we’re developing hold. The context and the goal for Mydecine is to build on data we are seeing from the first generation of psychedelic medicine and to improve the molecules to fit into existing medical infrastructure; we’ve made significant progress towards that goal. Capital market risks have been felt strongly across the industry, forcing companies to pivot or die, as we’ve recently seen. Throughout this time, the Mydecine team has been collectively dedicated, with the vast majority of management deferring cash compensation while continuing to put in 100% effort and focus. We have concentrated on expanding our novel drug development and intellectual property portfolios, as well as finding innovative ways to partner, fund, and advance the development of our drug families, while not bearing the total cost associated with it. We look forward to updating the market on our results and evolving partnerships that have occurred in recent months and are ongoing,” said Josh Bartch, Mydecine Chairman and CEO.
The company also signaled several proprietary advancements, including first and second-generation drug candidates.
Mydecine said that it had created a group of new molecules called MYCO-006, which are similar to MDMA, but have a shorter half-life. In other words, the molecules may have a faster onset and shorter duration of effects than traditional MDMA. The company applied for a patent for its new molecules with the World Intellectual Property Organization.
Novel drug development is the main focus, with a primary target indication being smoking cessation (related to dependent oral fixation).
The company is conducting psilocybin research at the University of Alberta in Canada and has planned research and clinical trial sites worldwide, such as Johns Hopkins University School of Medicine, Leiden University Medical Center, Macquarie University, and The Imperial College of London.
Mydecine ended research that was being conducted in its research facility in Denver, the company’s headquarters, during the first half of 2022. Management said that it laid off and transferred employees at the facility to other parts of the company.
The company also sold its technology subsidiary, Mindleap Health Inc. to PanGenomic Health for C$3.6 million worth of stock, which Mydecine said reduced operating cash outflows and allowed the company to narrow its focus on its remaining core projects.
The company closed several private placements in 2022, which provided gross proceeds of C$3.92 million. Mydecine had a net loss of C$11.56 million from operations for the year ending December 31, 2022, but had a cash position of C$11.03 million at the same time. The company received additional funds of C$1.8 million in early January 2023 from selling investments.
Mydecine expects to advance its projects in the next 12 months by using advanced artificial intelligence and machine learning to design and screen drugs of interest, commencing animal studies and subsequent human trials, working closely with internationally recognized firms to conduct clinical trials, continuing to develop molecule families MYCO-004, MYCO-005, and MYCO-006, and exploring new strategic partnerships to leverage the company’s ongoing efforts.
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