Compass Pathways, a company focussed on mental health care, announced its financial results for the first quarter of 2023.
However, their financial results for the first quarter were a mixed bag.
There was no revenue to report at this time and the company had made a net loss of $24.2 million. During the same period of 2022, the company reported a loss of $21.2 million.
Compass Pathways provided investors with updates on their psilocybin therapy trials which are for treatment resistant depression.
Both are phase 3 trials and top-line data is expected in trial 1 during summer 2024 and top-line data in trial 2 is expected in mid-2025.
Phase 2 trials are currently ongoing for PTSD and anorexia.
Speaking of the losses the Compass Pathways said in its earnings statement:
“We will need substantial additional funding to complete the development and commercialization of our Phase 3 clinical program, and our Phase 2 studies in anorexia nervosa and PTSD.”
“Further, changing circumstances, some of which may be beyond our control, such as heightened or fluctuating inflation and interest rates, could cause us to consume capital significantly faster than we currently anticipate, and we may need to seek additional funds sooner than planned.”
“The Company’s inability to raise capital as and when needed could have a negative impact on its financial condition and ability to pursue its business strategies. There can be no assurance that the current operating plan will be achieved or that additional funding will be available on terms acceptable to the Company, or at all.”
Shares of Compass Pathways were trading up 1.3% at $8.70 following the release of their financial results.