Compass Pathways, a UK-based psychedelic company, reported a net loss per share of USD 0.73 per share in Q4 2022, missing analysts' estimates by 23.7%. The firm’s net losses for the quarter and full year widened by 20.2% YoY and 27.6% YoY, respectively. 

The company has not yet started generating revenue. Additionally, Compass Pathways announced multiple achievements for the year 2022, including the publishing of the phase IIb trial of COMP360 psilocybin therapy (in treatment-resistant depression) in the New England Journal of Medicine and the successful progress of phase III in the same.  

Research and development (R&D) costs for the year were USD 65.1 million compared with USD 44 million in 2021. The increase in R&D costs was a result of an increase in external development expenses due to the firm investigating COMP360 psilocybin therapy in clinical and pre-clinical trials, personnel expenses, and external consulting expenses. General and administrative (G&A) expenses for Q4 2022 decreased by 15.6% YoY to USD 12.4 million due to a decrease in other expenses, legal and professional fees.  

G&A expenses for the year increased by 15.8% YoY. This was due to a USD 3.2 million increase in personnel expenses as a result of an increased headcount. Further, legal and professional fees as well as non-cash share-based compensation costs of USD 2.8 million and USD 1.7 million, respectively contributed to the increase in G&A expenses.

Cash and cash equivalents for the year 2022 stood at USD 143.2 million compared with USD 273.2 million at the end of 2021. In terms of guidance for 2023, Compass Pathways increased expectations of net cash used in operating activities for Q1 2023 to a range of USD 24 million to 32 million and the full year 2023 to a range of USD 85 million to 32 million .