Psychedelic medicine company Compass Pathways plc (Nasdaq: CMPS) reported its financial results for the fourth quarter and year-end 2020 and gave an update on recent progress across its business. Compass delivered a net loss for the quarter ending in December 2020 was $18.8 million, or $0.52 loss per share versus last year’s net loss of $7.6 million, or $0.90 loss per share for the same period in 2019. The earnings beat the average analyst estimate according to Yahoo Finance which was for a loss of $1.05. The stock was trading slightly higher and was lately selling at $39. The average price target for the stock is $65.

For the full year, Compass reported a net loss of $60.3 million, or $3.55 loss per share (after including non-cash share-based compensation expense of $18.0 million) versus 2019’s net loss of $19.6 million, or $2.62 loss per share, during the same period in 2019 (after including non-cash share-based compensation expense of $3.3 million).

“Mental health is an urgent crisis and this has only been exacerbated by the COVID-19 pandemic,” said George Goldsmith, Chairman, CEO and Co-founder, Compass Pathways. “At COMPASS we remain committed to transforming mental health care and helping patients who are suffering and aren’t helped by existing treatments. Our phase IIb clinical trial of COMP360 psilocybin therapy for treatment-resistant depression is actively recruiting and we plan to report data from this trial at the end of the year. We are also continuing preclinical research into new indications, new compounds and new technologies, working with partners through our Centre of Excellence, our Discovery Center, and a number of investigator-initiated studies, as well as developing a strong team.”

Expenses

The company noted that research & development expenses (R&D) were $4.5 million for the fourth quarter versus $4.6 million during the same period in 2019. For the full year, R&D expenses were $23.4 versus $12.6 million in 2019, reflecting increased investment in the ongoing phase IIb COMP360 psilocybin therapy clinical programme for TRD.

General and administrative expenses (G&A) were $7.0 million for the fourth quarter versus $2.8 million in 2019. Of the increase, $0.5 million was related to share-based compensation expenses. G&A expenses were $28.0 million for the 12 months ended 31 December 2020, compared with $8.6 million during the same period in 2019. Of this increase, $10.2 million was related to share-based compensation expenses.

The company listed the following business highlights:

Business highlights

• Continued progress with phase IIb clinical trial of COMP360 psilocybin therapy for treatment-resistant depression (TRD)
  – On track to report data end of 2021
  – New site added in London, UK, bringing trial to 22 sites in 10 countries
• Signal-generating, exploratory psilocybin therapy research underway in a range of indications
  – COMPASS has the right to exclusively license new IP generated through these investigator-initiated studies
• Launch of first Centre of Excellence at Sheppard Pratt, Baltimore
  – Centres of Excellence are research facilities and innovation labs that COMPASS anticipates will model the ”clinic of the future”, showcasing the most advanced thinking in science, therapy, technology and design
• Expansion of Discovery Center in the US
  – Discovery Center expanded beyond initial sponsored research agreement with University of the Sciences (Philadelphia, PA) to include collaborations with world-leading scientists from laboratories at UC San Diego, School of Medicine, and Medical College of Wisconsin, in a virtual network