Compass Pathways Reports Q1 2024 Financials and Business Highlights

Compass Pathways plc (Nasdaq: CMPS), a biotechnology company focused on advancing mental health treatments, has announced its financial outcomes for the first quarter of 2024 and recent business developments.

In a significant development, Compass reported positive phase 2 results for its COMP360 psilocybin therapy in treating post-traumatic stress disorder (PTSD). With strong efficacy and tolerability data, the company plans to further advance this treatment. CEO Kabir Nath highlighted the overlap between treatment-resistant depression (TRD) and PTSD, suggesting potential synergies in their clinical programs.

The COMP360 program for TRD is progressing through phase 3 trials. The first pivotal trial (COMP005) involves a single-dose monotherapy in 255 patients, with results expected in Q4 2024. The second trial (COMP006) tests fixed repeat doses in 568 patients, with top-line data anticipated by mid-2025. Both trials include long-term follow-up studies to assess response duration and retreatment effects.

Compass is also expanding its commercial strategies through collaborations with Reliant Medical Group and other mental health providers. These partnerships aim to develop scalable delivery models for COMP360 psilocybin treatment in various care settings, should it receive FDA approval.

The company’s study in PTSD involved a 22-patient, multi-center trial with a single 25mg dose of COMP360, paired with psychological support. The treatment was well tolerated, showing early and sustained improvements in PTSD symptoms and functional impairment over 12 weeks.

In leadership updates, Michael Gold, MD, will join as Chief Research and Development Officer, bringing extensive experience in neurological and psychiatric disorders. He will collaborate with Guy Goodwin, the Chief Medical Officer, on advancing COMP360 and exploring new pipeline opportunities. Meanwhile, Trevor Mill, Chief Development Officer, will be leaving to pursue other ventures. Mill played a key role in developing COMP360 programs for TRD, PTSD, and anorexia nervosa, and exploring early pipeline opportunities.

Financially, Compass reported a net loss of $35.2 million for Q1 2024, equating to a $0.55 loss per share. This compares to a $24.2 million net loss in Q1 2023. Increased research and development expenses, primarily due to the advancement of COMP360 phase 3 trials and additional personnel costs, contributed to the higher loss. General and administrative expenses also rose slightly due to increased share-based compensation and professional fees.

As of March 31, 2024, Compass held $262.9 million in cash and equivalents, up from $220.2 million at the end of 2023. The company raised an additional $63.5 million in the first quarter through an ATM facility and warrant exercises. Long-term debt stood at $29.1 million, slightly up from $28.8 million at year-end 2023.

Looking ahead, Compass expects net cash usage in operating activities to be between $32 million and $38 million for Q2 2024, and between $110 million and $130 million for the full year. The company projects its current cash reserves will cover operational and capital expenditures into 2026.

Compass Pathways remains focused on pioneering new mental health treatments with its COMP360 psilocybin therapy, aiming to provide new hope for patients with TRD, PTSD, and potentially other conditions that are not adequately addressed by existing treatments.