HomeIndustryCOMPASS Pathways secures £285M funding

COMPASS Pathways secures £285M funding

London-based biotech startup, COMPASS Pathways, which has been trailblazing advancements in mental health treatments via psilocybin therapy, has announced securing a significant £285 million in a private funding round.

This groundbreaking venture is designed to accelerate patient access to evidence-based innovation in mental health.

The funding arrives after their previous financial results suggested that they might only have enough funding for another year.

The funding transaction, segmented into two tranches, entails an issuance of over 16 million American Depositary Shares (ADS) priced at £7.73 each.

This initial tranche contributes to over £125 million of the funding. Moreover, COMPASS is also granting the right to purchase the additional ADS at a 30% premium, approximately £9.93 per share, potentially raising nearly £159 million.

Those who acquire the initial tranche can exercise this right for up to three years.

A consortium of specialist healthcare investors orchestrated this monumental transaction, ensuring COMPASS Pathway’s sustained operations until 2025.

TCGX and Aisling Capital spearheaded the initiative, with contributions from several new and existing institutional stakeholders, such as Vivo Capital, RA Capital, and many more.

The firm has earmarked the funds to fortify its phase 3 clinical programme for individuals struggling with treatment-resistant depression.

Other focus areas include commercial strategy, phase 2 trials, enhancing digital technology, and research, ensuring comprehensive coverage until late 2025.

For the uninitiated, psilocybin therapy combines the therapeutic potential of ‘magic mushrooms’ with psychological support.

COMPASS Pathways stands at the forefront of this revolutionary treatment, emphasising their proprietary synthetic psilocybin, COMP360, which is administered in tandem with professional psychological guidance.

The therapeutic benefits of psilocybin, when combined with structured support, are proving to be promising for conditions like depression, anxiety, and addiction.

Kabir Nath, CEO of COMPASS Pathways, expressed gratitude to the investors, recognising their faith in the company’s evidence-backed approach. “We view this investment as a testament to the potential of psychedelic medicine,” Nath remarked, underscoring the importance of their rigorous methodology.

Established in 2016, COMPASS Pathways is committed to reinventing mental health solutions.

They’ve embarked on the most extensive phase 3 clinical programme ever for their COMP360 psilocybin therapy, targeting treatment-resistant depression, setting a precedent for evidence-based psychedelic therapy in the UK.


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