After the markets closed on Friday, psychedelic drug company Filament Health Corp. (OTCQB: FLHLF) (NEO: FH) reported no revenue and a net loss of $1.3 million financial results for the first quarter ending March 31.
Last year’s net loss for the same time period was $1.5 million.
“We’re proud to share that our pharmaceutical-grade botanical psilocybin is now being studied in clinical trials for 10 different mental health indications across North America and Europe,” said Benjamin Lightburn, CEO and co-founder of Filament Health. “Moving forward, we will continue to strengthen our revenue-generating supply network and mutually beneficial arrangements with research institutions.”
Looking at the company’s expenses, insurance costs rose as the company improved its executive insurance plan. Professional fees increased while the company cut back on sales and marketing expenses. Wages also increased as fees related to executive services increased.
As of March 31, the company had a working capital balance of just over $2 million. The decrease in working capital is attributable to the company completing a private placement and convertible debenture financing for aggregate proceeds of $2.5 million in 2022.
The company also updated investors on its pipeline.
- On March 15, Filament announced FDA approval of a Phase 2 clinical trial studying botanical psilocybin for methamphetamine use disorder.
- On February 14, it announced its second psilocybin supply agreement with the Center for Addiction and Mental Health (CAMH) for a clinical trial for amnestic mild cognitive impairment.
Filament is pursuing partnerships that could potentially lead to more revenue. It has licensed its technology relating to the production of its PEX010 (oral psilocybin) drug candidate to EntheoTech Biosciences Inc., Cybin Therapeutics, Psyence Group, and ATMA Journey Centers and generated licensing revenues from these agreements.
Supplying third-party companies with Filament’s drug candidates provides the company with exposure to multiple indications through the potential to obtain longer term operating milestones and royalty fees upon successful commercialization.
Additionally, Filament said it has signed academic supply agreements with the Centre for Addiction and Mental Health, Psychiatric Center Copenhagen, University of San Francisco‘s Translational Psychedelic Research Program (TrPR), and the Canadian Centre for Psychedelic Science in partnership with the University of Toronto to supply its PEX010 drug candidate in their academic clinical trials.
Filament’s first three botanical drug candidates are standardized, purified extracts of psilocybe cubensis fruiting bodies include:
- PEX010 Psilocybin – oral delivery (1mg and 25mg)
- PEX020 Psilocin – oral delivery (dose withheld)
- PEX030 Psilocin – sublingual delivery (dose withheld)
PEX010, PEX020, and PEX030 have successfully attained U.S. Food and Drug Administration Botanical Drug classification, a unique development pathway in comparison to isolated natural and synthetic compounds.
Filament’s PEX010 drug candidate has obtained approval to be administered in clinical trials in Canada, the USA, the United Kingdom and the European Union from Health Canada, the FDA, and other governing bodies.
Filament has also developed the following standardized drug candidates which are in preclinical stage:
- AEX010 Ayahuasca – oral delivery (dose withheld)
- AEX020 Monoamine Oxidase Inhibitor – oral delivery (dose withheld)
Filament does not currently market or sell any products for medical or recreational use. However, it has executed multiple agreements and has an active partnership network pipeline of parties relating to the licensing of intellectual property related to the production of extracts for clinical trial drug candidates.
Filament is actively marketing manufacturing and intellectual property capabilities to third-party drug developers.