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Compass Pathways PLC (CMPS) Q4 2024 Earnings Call Highlights: Strategic Financing and R&D ...

In This Article:

  • Cash Used in Operations: $119.2 million for the full year 2024, within the guidance range of $114 million to $120 million.

  • Net Loss: $155.1 million or $2.30 per share for the year ended December 31, 2024, compared to $118.5 million or $2.32 per share in 2023.

  • Non-Cash Share-Based Compensation: $19.5 million in 2024, up from $17.3 million in 2023.

  • R&D Expenses: $119 million in 2024, compared to $87.5 million in 2023.

  • G&A Expenses: $59.2 million in 2024, compared to $49.4 million in 2023.

  • Debt: $30.2 million under the Hercules loan facility at the end of Q4 2024.

  • Cash and Cash Equivalents: $165.1 million as of December 31, 2024.

  • Recent Financing: Net proceeds of approximately $140 million in January 2025.

  • 2025 Financial Guidance: Expected net cash used in operations to be within the range of $120 million to $145 million.

Release Date: February 27, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Compass Pathways PLC (NASDAQ:CMPS) has secured financing that positions the company to complete the COMP360 program in treatment-resistant depression (TRD) and progress the PTSD development program.

  • The company has recruited over 90% of patients for the 005 trial, indicating strong progress towards completing enrollment.

  • Compass Pathways PLC (NASDAQ:CMPS) is on track to report top-line results from the 005 trial in the second quarter of 2025, providing key efficacy measures.

  • The recent financing provides a financial runway to fund operations through the planned 26-week data readout from the COMP006 study, expected in the second half of 2026.

  • Strategic collaborations with healthcare delivery organizations are providing valuable insights into care settings, aiding in the strategy for launch and post-launch scaling.

Negative Points

  • The company reported a net loss of $155.1 million for the year ended December 31, 2024, compared to a net loss of $118.5 million in 2023.

  • Research and development expenses increased significantly to $119 million in 2024 from $87.5 million in the prior year.

  • General and administrative expenses also rose to $59.2 million in 2024 from $49.4 million in the previous year.

  • The company has debt under the Hercules loan facility amounting to $30.2 million at the end of the fourth quarter.

  • There is uncertainty regarding the regulatory path and the specific requirements for the PTSD program, as discussions with the FDA are ongoing.

Q & A Highlights

Q: What is the expected benchmark for the six-week Madras delta in the COMP005 trial? A: Kabir Nath, CEO, stated that the phase 2B six-week data is being used as a benchmark for the phase three studies. The clinically meaningful effect size is lower, but the phase 2B data serves as a guide for planning the phase three trials.