Compass Pathways (Nasdaq: CMPS) reported a steady second quarter for 2023. The company is conducting phase 3 trials of its primary product, COMP360, a psychedelic therapy being developed to address treatment-resistant depression. The trials are said to be moving ahead according to plan.
During the quarter, the American Medical Association started accepting a new billing code that fits with the kind of support services COMP360 needs to conduct in-person psychedelic therapy support services, which could expand access as insurers will be able to help with the cost of treatment to widen access.
In a statement, CEO Kabir Nath also said that the FDA’s recently issued guidance on psychedelic drug development “represents an important validation of our area of science.”
The company said it held $148.2 million in cash and equivalents, an increase from $143.2 million at the end of 2022. The rise was helped by a secured term loan facility of up to $50 million, as well as sales of equity.
Despite a net loss of $28.3 million for the second quarter, an increase from the $21 million loss during the same period in 2022, Nath remains optimistic about the company’s progress. The losses were attributed largely to rising research and development costs, a necessary investment for COMP360.
“The cash received from the draw down from our debt facility with Hercules and sales of equity through our (at-the-market) program lengthened our cash runway significantly and allows us to continue to invest in our COMP360 development programs at full speed,” Nath said.
Compass is also exploring additional uses for COMP360, with ongoing phase 2 trials in anorexia nervosa and post-traumatic stress disorder. Additionally, the company mentioned that results from an investigator-led study on the use of COMP360 in female anorexia patients were recently published in the Nature Medicine journal.
The company anticipates spending between $80 million to $90 million in operational activities for the full year of 2023.