Reunion Neuroscience Posts $48 Million Loss Ahead of Acquisition

Reunion Neuroscience is expected to go private later this year.

Toronto-based Reunion Neuroscience (Nasdaq: REUN) (TSX: REUN) reported a $48 million net loss for its 2023 fiscal year, which ended March 31, but the company expressed optimism on its development of a psychedelic treatment for postpartum depression.

Reunion, which was recently purchased by MPM BioImpact for $13 million and is set to go private later this year, reported that its key postpartum drug has thus far been “generally well-tolerated” in clinical trials, a sign that the company is making progress toward bringing some of its work to market.

The drug, RE-104, gives patients a roughly 3.7-hour-long psychedelic trip similar to that of psilocybin, Reunion reported, but with “the same intensity and quality of experience” and “with no serious adverse events.”

A second clinical trial is set for later this year, even as Reunion has been fighting in New Jersey court to protect its patent on RE-104, which it alleged was stolen by competitor Mindset Pharma in its own patent application.

A large part of Reunion’s losses for the 2023 fiscal year were from discontinuing ketamine treatment clinics that were spun out to form Field Trip Health & Wellness in August 2022, which cost Reunion $10.4 million. (Field Trip recently closed or sold most of those clinics, except for two in Canada.)

Reunion also reported that it lost $13.8 million due to lease obligations associated with the Field Trip clinics and a write-off of its equity investment in Field Trip.

At the close of March, Reunion had $27.7 million in the bank, down from $64 million a year prior.

The acquisition by MPM BioImpact is set to close in the third quarter this year, according to Reunion.

John Schroyer

John Schroyer has been a reporter since 2006, initially with a focus on politics, and covered the 2012 Colorado campaign to legalize marijuana. He has written about the cannabis industry specifically since 2014, after being on hand for the first-ever legal cannabis sales on New Year’s Day that year in Denver. John has covered subsequent marijuana market launches in California and Illinois, has written about every aspect of the marijuana trade, and was part of the team that built the cannabis industry’s first-ever trade show, MJBizCon. He joined Green Market Report in 2022.

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