Debra Borchardt
COMPASS Pathways plc (Nasdaq: CMPS)reported its financial results for the fourth quarter and year-end 2022. The company has no revenue to report at this time. For the fourth quarter, Compass delivered a net loss of $30.9 million, or $0.73 loss per share (including non-cash share-based compensation expense of $3.3 million).
This was higher than last year’s net loss of $25.7 million, or $0.61 loss per share, (including non-cash share-based compensation expense of $2.8 million). This also missed the Yahoo Finance average analyst estimate for a loss per share of $0.59.
For the full year of 2022, again there is no revenue and the net loss for the year was $91.5 million, or $2.16 loss per share (including non-cash share-based compensation expense of $13.1 million). This was also higher than the previous year’s net loss of $71.7 million, or $1.79 loss per share, during the same period in 2021 (including non-cash share-based compensation expense of $8.6 million).
Cash Burn
The cash burn is fairly high. Cash and cash equivalents were $143.2 million at the end of 2022 versus $273.2 million at the end of 2021. In addition the company said that the first quarter 2023 net cash used in operating activities is expected to be in the range of $24 million to $32 million and the full-year 2023 to be in the range of $85 million to $110 million. The company has an accumulated deficit of $261.1 million.
Kabir Nath, Chief Executive Officer, said, “During this past quarter, we commenced our COMP360 phase 3 pivotal program in treatment-resistant depression, a significant milestone for our area of science as these are the first ever phase 3 trials of psilocybin. We have also announced important updates to this program that accelerate the placebo-controlled trial pivotal data read out and streamline the long-term follow up as an integrated component of the pivotal trials. We are confident that this phase 3 program should generate the evidence to support a regulatory filing and to support broad patient access through integration into healthcare systems.”
Rising Expenses
R&D expenses were $19.8 million for the quarter, compared with $13.6 million during the same period in 2021. Of this increase, $2.7 million was attributable to an increase in other expenses, which primarily related to an increase in external consulting expenses. A further $2.3 million was attributable to an increase in external development expenses. Personnel expenses and non-cash share-based compensation increased by $1.0 million and $0.2 million respectively.
Studies
The company has no products close to commercialization. Compass reported that the COMP360 psilocybin therapy in treatment-resistant depression (TRD) Phase 3 program is underway. The program composed of two pivotal trials with an integrated long-term outcomes component. The pivotal trial 1 (COMP 005): single dose monotherapy, n=255, top line data expected summer 2024. The pivotal trial 2 (COMP 006): fixed repeat dose monotherapy, n=568, top line data expected mid-2025.
Compass has also stated that even if it is able to generate revenue, it may never make a profit.
