Compass Pathways Q2 2024 Financial Results and Business Highlights

Compass Pathways plc, a biotechnology company listed on Nasdaq under the ticker symbol CMPS, has unveiled its financial outcomes for the second quarter of 2024 and provided updates on its ongoing business activities. The company, which is focused on pioneering psilocybin treatments for mental health conditions, revealed notable progress in its clinical programs and leadership changes.

Kabir Nath, the CEO of Compass Pathways, expressed satisfaction with the advancements in their phase 3 program targeting treatment-resistant depression (TRD). He highlighted the appointments of Lori Englebert as the new Chief Commercial Officer and Gino Santini as the incoming Chairman of the Board. Nath also extended gratitude to David Norton for his interim chairmanship.

Compass Pathways is progressing with its COMP360 psilocybin treatment, particularly in its phase 3 trials for TRD. This program is the largest randomized, controlled, double-blind clinical trial for psilocybin treatment conducted to date. The top-line data from the pivotal COMP005 trial is anticipated in the fourth quarter of 2024, while the main endpoint data from the COMP006 trial is expected by mid-2025.

In the second quarter, Compass announced positive results from a phase 2 study examining COMP360's safety and tolerability in 22 patients with post-traumatic stress disorder (PTSD). Participants showed substantial and enduring improvements in symptom severity and functional impairment, with no serious adverse events or patient withdrawals. The company is now exploring the optimal path forward for PTSD treatment based on these encouraging results.

Leadership changes at Compass Pathways include the appointment of Gino Santini as Chairman of the Board, effective September 3, 2024. Santini brings extensive board leadership and governance experience, having served on multiple boards in both public and private sectors, including roles at Collegium Pharmaceuticals, Horizon, Intercept Pharmaceuticals, and AMAG Pharmaceuticals. Santini's career at Eli Lilly and Company, where he played a significant role in mergers and acquisitions and led various strategic initiatives, further solidifies his qualifications.

Lori Englebert, who joined as Chief Commercial Officer in July, comes from Axsome Therapeutics, where she led commercial and business development efforts. Additionally, Michael Gold has taken on the role of Chief Research and Development Officer in the second quarter.

Financially, Compass Pathways reported a net loss of $38.1 million for the three months ending June 30, 2024, translating to a loss of $0.56 per share. This compares to a net loss of $28.3 million, or $0.62 per share, for the same period in 2023. The six-month figures show a net loss of $73.3 million, or $1.11 per share, compared to $52.5 million, or $1.19 per share, in the prior year. Increased research and development costs, primarily due to the advancement of the COMP360 phase 3 trials and higher personnel expenses, contributed to these losses.

The company's research and development expenses rose to $29.1 million for the quarter, up from $19.8 million in the same quarter of 2023. For the six-month period, these expenses were $54.0 million, compared to $38.9 million in 2023. General and administrative expenses also saw an increase, reaching $14.3 million for the quarter and $27.9 million for the first half of the year, primarily due to higher personnel expenses.

As of June 30, 2024, Compass Pathways held $228.6 million in cash and cash equivalents, up from $220.2 million at the end of 2023. The company’s long-term debt was reported at $29.4 million, slightly higher than the $28.8 million recorded at the end of the previous year.

Looking ahead, Compass expects its net cash used in operating activities for the third quarter of 2024 to be between $32 million and $38 million. For the full year, this figure is projected to be between $110 million and $130 million. The current cash reserves are anticipated to support operating expenses and capital requirements until 2026.

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