atai Life Sciences Q1 2024 Financial Results and Updates

atai Life Sciences, a clinical-stage biopharmaceutical company, released its first quarter 2024 financial results and announced significant corporate updates. Co-Founder Florian Brand will step down as CEO by the end of 2024, transitioning leadership to Co-Founder and current Chief Scientific Officer, Dr. Srinivas Rao. Dr. Rao will serve as Co-CEO starting June 1, 2024, and is expected to become the CEO by year-end, pending legal appointments.

Brand expressed pride in atai's progress since its founding in 2018, highlighting clinical milestones such as the dosing in the VLS-01 Phase 1b program and promising Phase 2 data from BPL-003 and COMP360. As Brand prepares to explore new ventures, he voiced confidence in Dr. Rao's leadership, emphasizing Rao's extensive experience in neuropsychiatric drug development.

Dr. Rao, who has over two decades of experience in biotechnology and pharmaceuticals, expressed gratitude for the opportunity to continue working towards atai's mission. He anticipates significant data milestones this year, including Phase 2b results for BPL-003 in treatment-resistant depression (TRD) and Phase 3 data for COMP360 in TRD patients.

Christian Angermayer, Founder and Chairman, praised Brand's leadership and noted the company's achievements under his tenure, including an IPO in 2021. He expressed confidence in Dr. Rao's ability to guide atai into its next developmental phase.

Clinical highlights include several ongoing and upcoming trials:

1. VLS-01: An oral transmucosal film formulation of DMT for TRD. Dosing in a Phase 1b study began in March 2024, with results expected in the second half of the year. A Phase 2 trial is planned around the end of 2024.

2. BPL-003: An intranasal formulation of 5-MeO-DMT for TRD. Initial Phase 2a results showed rapid and durable antidepressant effects. A Phase 2b study is ongoing, with topline data anticipated in the second half of 2024.

3. COMP360: An oral formulation of synthetic psilocybin for TRD. A Phase 2 study in PTSD patients showed significant symptom improvement. Phase 3 trials in TRD are underway, with preliminary data expected in late 2024 and mid-2025.

Financially, atai reported cash, cash equivalents, and short-term investments of $121.3 million as of March 31, 2024, a decrease from $154.2 million at the end of 2023. This reduction was primarily due to operational cash use and investments. The company projects that its current funds and committed term loans will support operations into 2026.

Research and development (R&D) expenses for the quarter were $11.5 million, down from $19.3 million in the first quarter of 2023, reflecting reduced program-specific costs and R&D personnel expenses. The company expects R&D spending to rise as clinical programs advance.

General and administrative (G&A) expenses also decreased to $12.6 million from $14 million in the prior year, attributed to lower personnel and professional service costs. This reduction was partially offset by a prior-year non-income tax refund. atai is committed to controlling G&A expenses.

The net loss attributable to stockholders for the first quarter was $26.7 million, an improvement from $33.1 million in the same period in 2023.

Overall, atai continues to progress in its mission to develop innovative treatments for mental health disorders, with several critical clinical trials and financial strategies in place to sustain its operations and growth.

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