Psychedelic company Compass Pathways plc (Nasdaq: CMPS) reported its financial results for the third quarter of 2020 and gave an update on recent progress across its business. The company reported a net loss of $16.6 million and essentially no income as the company is focused on research at this time. The company has cash of $196.5 million as of 30 September 2020, which is expected to fund operations into 2023.
George Goldsmith, Chairman, CEO and Co-founder, Compass Pathways, said, “This has been a significant quarter, with an IPO that gives us the funds needed to advance our mission and transform mental health care. Recent hires for the company build further important expertise within our strong leadership team, including in data science and digital health, which will be core to the future of mental health care. We remain fully focused on execution of our phase IIb trial investigating our COMP360 psilocybin therapy for treatment-resistant depression and, with scientific partners in our recently established Drug Discovery Center, are also evaluating the potential of early stage compounds to address mental health challenges.”
R&D expenses were $6.9 million for the quarter versus $3.1 million during the same period in 2019. The change was primarily related to increased activities associated with the company’s ongoing development of COMP360, increased share-based compensation, and other increases in personnel costs to support the development of COMP360. G&A expenses were $6.6 million for the quarter versus $3.1 million during the same period in 2019. $2.1 million of the increase was related to share-based compensation expenses, and there were also increases in legal and professional fees, personnel and consulting expenses, and facilities costs.
Compass said in a statement, “We have continued to make steady progress with our phase IIb clinical trial of COMP360 psilocybin therapy for treatment-resistant depression. We are opening a new trial site in Berlin, Germany, this month, bringing our trial to 21 sites in 10 countries. While the COVID-19 pandemic has impacted our trial, our plan to report data from this trial in late 2021 remains unchanged.”
On 5 August 2020, the company entered into a sponsored research agreement with the University of the Sciences in Philadelphia, PA, to establish a Drug Discovery Center. The Center is exploring and developing optimized psychedelic and other early-stage compounds targeting the 5HT2A receptor, a receptor in the brain that is recognized as a promising target in the treatment of mental health illnesses.
In July 2020, Compass was granted its second UK patent, adding to our US patent and German utility model, and including claims covering crystalline psilocybin, pharmaceutical formulations, medical uses, and a method of manufacturing. The US patent, granted in December 2019, was the subject of a petition for post-grant review, filed on 21 February 2020; the petition was dismissed on the merits on 20 August 2020.
New Team Members
Our team has continued to expand and we have been pleased to welcome several new colleagues to our leadership team during the quarter and post-period. Linda McGoldrick joined our board of directors in September 2020, bringing healthcare and life sciences experience from a range of public and private companies, and non-profit organizations, including Financial Health Associates International, Zillion Inc, Veos plc, and Kaiser Permanente International. In 2018, Linda was appointed by the Governor of Massachusetts to serve on the state’s Health Information Technology Commission. Greg Ryslik PhD joined us on 9 November 2020 as Senior Vice President, Data Science, Machine Learning and Digital Health Research, and Stephen Schultz will join us on 1 December 2020 as Senior Vice President, Investor Relations. Greg is a data scientist and AI (artificial intelligence) executive; he is an instructor at Stanford Continuing Studies and has held senior positions at Mindstrong and at Tesla Inc. Stephen has more than 30 years’ experience in investor relations and joins us from GW Pharmaceuticals; he has previously held senior roles at Amarin Corporation, Acusphere, and Shareholder.com. Earlier in the quarter, Steve Levine MD joined us as Vice President, Patient Access; Steve was formerly Founder and CEO at Actify Neurotherapies. Sarah Bateup was appointed Head of Therapy Research and Training, having previously been Chief Clinical Officer at Ieso Digital Health.