Compass Pathways PLC (CMPS, Financial), a biotechnology company dedicated to accelerating patient access to evidence-based innovation in mental health, announced its financial results for the third quarter of 2023 on November 2, 2023. The company has made significant progress in its COMP360 phase 3 program, with the authorization to commence recruitment in a number of European clinical trial sites. The company's cash position as of September 30, 2023, stood at $248.0 million.
Financial Highlights
In August, Compass Pathways completed a private placement, issuing and selling 16,076,750 American Depositary Shares (ADSs) and warrants to purchase up to 16,076,750 ADSs at a purchase price of approximately $7.78 per ADS. The company received $125 million in gross proceeds, before deducting placement agent commissions and offering expenses. An additional $160 million in gross proceeds is expected if the PIPE Warrants are fully exercised.
As of September 30, 2023, the company's cash and cash equivalents were $248.0 million, compared with $143.2 million as of December 31, 2022. The company's long-term debt was $28.4 million as of September 30, 2023. The net loss for the three months ended September 30, 2023, was $33.4 million, or $0.67 loss per share, compared with $18.4 million, or $0.43 loss per share, during the same period in 2022.
Research and Development Expenses
Research and development (R&D) expenses were $21.5 million for the three months ended September 30, 2023, compared with $14.0 million during the same period in 2022. The increase was primarily due to an increase in external development expenses as the company continues to investigate COMP360 psilocybin treatment in clinical and pre-clinical trials.
General and Administrative Expenses
General and administrative (G&A) expenses were $12.5 million for the three months ended September 30, 2023, compared with $11.6 million during the same period in 2022. The increase was primarily due to an increase in facilities and other expenses and non-cash share-based compensation.
Financial Guidance
For the fourth quarter of 2023, the net cash used in operating activities is expected to be in the range of $9 million to $15 million. The full-year 2023 cash burn guidance has been adjusted downward and is expected to be in the range of $79 million to $85 million.
Compass Pathways continues to make progress in its clinical programs and invest in its pre-commercial work to ensure a successful COMP360 launch, if approved.
Explore the complete 8-K earnings release (here) from Compass Pathways PLC for further details.
