Reunion Neuroscience Posts $48 Million Loss Ahead of Acquisition

Toronto-based Reunion Neuroscience (Nasdaq: REUN) (TSX: REUN) reported a $48 million net loss for its 2023 fiscal year, which ended March 31, but the company expressed optimism on its development of a psychedelic treatment for postpartum depression.

Reunion, which was recently purchased by MPM BioImpact for $13 million and is set to go private later this year, reported that its key postpartum drug has thus far been “generally well-tolerated” in clinical trials, a sign that the company is making progress toward bringing some of its work to market.

The drug, RE-104, gives patients a roughly 3.7-hour-long psychedelic trip similar to that of psilocybin, Reunion reported, but with “the same intensity and quality of experience” and “with no serious adverse events.”

A second clinical trial is set for later this year, even as Reunion has been fighting in New Jersey court to protect its patent on RE-104, which it alleged was stolen by competitor Mindset Pharma in its own patent application.

A large part of Reunion’s losses for the 2023 fiscal year were from discontinuing ketamine treatment clinics that were spun out to form Field Trip Health & Wellness in August 2022, which cost Reunion $10.4 million. (Field Trip recently closed or sold most of those clinics, except for two in Canada.)

Reunion also reported that it lost $13.8 million due to lease obligations associated with the Field Trip clinics and a write-off of its equity investment in Field Trip.

At the close of March, Reunion had $27.7 million in the bank, down from $64 million a year prior.

The acquisition by MPM BioImpact is set to close in the third quarter this year, according to Reunion.

The post Reunion Neuroscience Posts $48 Million Loss Ahead of Acquisition appeared first on Green Market Report.

Read More