CMPS - Earnings call 4 2020 | COMPASS Pathways plc

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Operator

Good day, ladies and gentlemen, and welcome to the COMPASS Pathways Fourth Quarter 2020 Conference Call. [Operator Instructions] As a reminder, this call is being recorded.

I would now like to introduce your host for today's conference, Steven Schultz, Senior Vice President of Investor Relations.

You may begin.

Steve Schultz

Thank you, operator, and welcome all of you, and thank you for joining us today for our fourth quarter and full Year 2020 results call. Senior Investor Schultz, Pathways. at Steve is Vice Relations President COMPASS This today, Goldsmith, Morgan, and George joined Chief and Officer. And by Officer; Chairman I'm Chief Executive Financial Piers our call business begin with will today's update George on recent progress. a will results the financial quarter of for year. with review full Piers follow our a and

to open will then questions. We the call

a the is call Investor will call. website release after shortly and hope Relations that quarterly of We on press the review available today. we The be recorded chance you've the -- issued had the press being Pathways the to conclusion release COMPASS earlier

Before everyone forward-looking amended. today, statements call let Act Private we making meaning the the Reform begin, as the of me that during XXXX within be Securities remind team will Litigation the of

on by described any Risk and risks, statements of SEC. in place the made statements. differ risks Exchange uncertainties today, U.S. factors, should earlier under with those COMPASS forward-looking and could results with Commission by result the undue Actual Securities forward-looking filed implied our from or You uncertainties Factors annual subsequent on XX-F those or other heading and various materially reliance and these as Form a expressed events report the in filings not including

revise date. our specifically and only upon subsequent to today as disclaim Additionally, relied these forward-looking any statements represent forward-looking not We or should views update any views any of be as of as our obligation statements. representing

CEO Co-Founder, I'll now over hand George Goldsmith. Chairman call our and the to and

George Goldsmith

productive have been us of time who and joined months The welcome today. last all to you, busy Pathways. few for COMPASS and you Steve, Thank a have

our progress health our on bringing innovation goal toward make continued mental IPO to has successful team our in NASDAQ of evidence-based in patients. to September, Following good

model therapy, specially psychological COMP silicide of in Our is which new therapists. is proprietary formulation of synthetic XXX trained with support on the in from in of our psilocybin initial administered a focus development conjunction

at of trial depression, a we're the are to TRD, Phase and track We psilocybin end IIb on or this treatment-resistant year. therapy conducting currently the from of for data report

we year, North We trial now our site to countries Europe and St. Research this XX Earlier new sites Pancras welcomed in in across Clinical America. a XX London. have trial,

pandemic helped COVID-XX geographic COVID-XX always situation enable We level work continued impacted this ongoing with we'll of of sites the our the site our teams. the diversity While to trial, prioritize patients and to has closely safety all our has assess and recruitment.

in collaboration formal that work program encourage model. with trained toward our bringing we out and support rigorous scalable from of psilocybin month, sharing methodology therapy in of program and therapy. integral evolve, This therapists psilocybin a training for therapy Frontiers our we as comprehensive by support therapist our in and Psychological psilocybin to hope continue training is all therapist benefit part paper in Last academic it. among a and Psychiatry. sets from psychological jointly The who will might details of will we published approach, an providers training providing researchers to written group shared a we

labs consistently innovation Diagnostics its first Pratt commitment and designed leading at excellence of of on to scale, Baltimore, center therapies long delighted patients service psychiatric a facilities bring has are Maryland. Sheppard to to United States. institutes we're research for are our large hospitals health delivery ranked top of one the research Therapeutics in world's of establish which help excellence, excellence and in the Sheppard the mental is community of is institute and patients. of to Pratt in the to as one history and clinical Advanced in centers Our us a and It

improve patient studies; to excellence conduct proof-of-concept clinical and train care; solutions health certify and models shape of therapy trials, experience. generate to centers mental including Our will therapies; evidence prototype in digital

of first in underway bipolar psilocybin severe X focus will and TRD COMPXXX depression. research and in The studies, type IISs, investigator-initiated wave already are therapy on or

through we indications Pratt, body a exploratory late COMPXXX different independent high These chronic using Sheppard continue that with the disorder. indications, stage right medical we in headache, has studies COMPASS further cluster trials. that these a investigation, If merit them to all These provide are to studies addition major areas IISs. license and number are single IP number dysmorphic exclusively include into academic these anorexia, working new In of disorder are will of depressive generating institutions signals partners on generated of studies. need. and in unmet moving

with well, also in progressing completed XXXX. studies Our program preclinical over XX new is

In discovery from we've Medicine of San with expanded Wisconsin. a Diego is COMPASS and Medical UC Sciences and agreement center University from discovery of led scientists Wallach New world-leading our College research of collaborations addition, center the Jason The new Philadelphia, sponsored between by through Dr. in School Sciences.

optimized The compounds will in will receptor is illnesses. a mental that broaden psychedelic our its This us the scientists been compounds stages, X-HTXA the new enable working in COMPASS are together a in be to has implicated early all team in targeting new network to but portfolio beyond our exclusive for health virtual develop therapy. generated. we work psilocybin licensee receptor, the brain believe it with

who over our quarter. give With financial to an that, hand of will you I the results will for now update Piers,

Piers Morgan

George. Thank you,

IPO, we completed million compared $XXX.X XXXX of upsized million This fund proceeds XXXX December at is September and XXXX. XX, expected which at equivalents in cash net successful into held our of with $XX.X with XXXX. $XXX.X XX, Following to of cash September approximately we operations million,

year noncash for XX The from months ended the operations to X for results XXXX. recap with and expense loss ended compared amounted with million XX, million XXXX operations months the compared loss from period. compensation the December year now operations XX, December compared period. prior $XX.X million $XX.X The million XXXX of December prior XX, included with noncash The of $X.X with XXXX. million months the for The loss million XX noncash XXXX for $XX.X prior $XX from December the X XX for in the from expense of operations the million million will months for share-based ended $X.X period. December I compensation months financial compensation ended our XX, the $X.X compensation share-based noncash compared loss to amounted $X.X for the X fourth in included XX, quarter share-based XXXX of ended

the an increase expenses, of hire; $X.X compensation; of training period primarily Research expenses, an primarily attributable compared development $X.X Research development $XX.X of unchanged period noncash the a drug $X.X increase $X same million therapies share-based increases and in million the $X.X on which for and new expenses in expenses in million million an trial four, year. million million broadly decrease relates and preclinical ended product to: months $X.X million year quarter were the last million two, for December the $XX.X personnel payment with expenses, for in XXXX. in expenses The other full of reflecting compared in were $X.X fourth million expenses offset clinical was three, one, consultants. by million over $X.X an primarily in XX, of to development development; in increase at XXXX for same million million and in with of $X.X research increase XXXX $X.X development studies, and increase in and XX of

months quarter period $X.X for million General $X expenses to as for of same fourth related the and higher was the in expenses The and XX expenses $XX XXXX. XXXX same and General professional compared ended with personnel million share-based as $X.X December compared the the with period administrative and XXXX. legal administrative consulting in compensation fees, well were increase million were million expenses and for XXXX facilities XX, costs. during

to: fees, general $X.X of and our increase million attributable facilities an increase $X.X primarily noncash related of to compensation to in and and over expenses administrative other four, including legal and in million an depreciation an in other million expenses, hires; of $X.X an rent, professional financing, full The increase and in IPO year increase $XX.X B personnel costs, corporate Series in insurance. of share-based was costs; new activities; three, and two, the million increase one, attributable primarily primarily

exchange million ended for cash $X.X for expense the period of balances. of Other an XX of impact of the nonoperating $X.X translation expense same to to foreign amounted rates Other ended net XX, of X on million corresponding of related an in nonoperating with XXXX amounted the in million December XX, period XXXX, the primarily items million compared expense movements for months December the other months to items net income $X.X in the an $X.X XXXX. during with XXXX compared

million loss XXXX. same per $XX.X per was million $X.XX period XXXX was quarter $X.X XX, compared XX The loss the share $X.XX share million or per ended fourth XXXX per same during $XX.X with million for December the loss the $X.XX of share XXXX. with loss share the in for period months loss or net $X.XX $XX.X or loss compared during Net or in

with will hand you back to that, And George. now I

George Goldsmith

COMPASS mental in we this the not in option. the that people crisis must and Thank and of suicide. more are wellbeing. health And an exacerbating mental suffering a And time, Pathways facing do crisis. Today, with people do from who attempt the and in care mental XX help dies Piers. someone company can suicide. care of every world vision We is mental is world and any a seconds, our you, millions to pandemic XX urgent challenges have health are health is

believe Pathways and to the We is mental in COMPASS these health transforming care developing to lead solutions well industry challenges. positioned

through and team ultimately accessible. regulatory and needed to a patients, have with spectrum them therapies of across process, of discover to widely R&D the them making broad experience the and expertise develop portfolio bring a We

making future accelerate the and this Thanks to to investors good development, goals. resources have progress and we we toward financial investors, are our our

that, now look the questions. and for your in on future keeping will for you COMPASS. line We for time you calls. Operator? to today we forward interest With your updated Thank open

Operator

[Operator Instructions]

from of comes Cowen. Baral line Ritu first from Our question the

Ritu Baral

Phase had expectations? programs. I IIb a follow-up safety, wanted the as how dropouts And within research I on conduct it, then see to and can the ask was proceeding? you just Are new

George Goldsmith

for Ritu, thank your you so much question.

and continues pace been the in at think COVID. raised I of effective program by we've challenges IIb navigating Phase some earlier very Our

this progress. safety now recruiting at go issues very have been be in no are up. which population. has no sadly and looked of to they the to expected had absolutely We And line. committing continues study a has that year There instances are number issues, the safety time at reviewed those, our concern population. been DSMB major regulatory end this X all, well thus about been have with came there patient We've and of to

IPO. well, the of since year program. end at are as to on and time those the been we've had we'll the updates be an for We're progressing current question your we've the -- So the reporting out stating key

Ritu Baral

program research I from new But you your on psilocybin the are sort program and And then profile new you targeting? lead and computer but entities right me, crashed And the of my receptor exact center, have like projects, terminology in how what what the the differ might profile programs new Great. -- of are and because those what's Are forgive don't the now. -- you discovery looking develop? specifically? to that at X-HTXA the on

George Goldsmith

been Great. has up who I'll hand that for over activity us. to Wilde, Lars driving

Lars Wilde

we Thank think through such in George or of One that academic Ritu, partners are are that we're approach. centers indications centers, these centers clinical exploring, here. in to the initiatives about And Yes. strategy George. spoke some new others with you, with doing there Look, side as of of -- excellent I is and X on partnerships. I of -- elements our anorexia, new bipolar think excellent terms

the And to [ we're serotonin. so the around And they would goal that novel shorter will entities understand they ] substances then if here benefits developing differentiated and treatment ship And need have psilocybin of that psilocybin duration have effect. sweet same in have structure are in X- is a that early hopefully, is with still to the the from then create studies far chemical we then a that seen benefits that with moment, between spot psilocybin. But such is terms of process somewhat compound. have been of of to with novel a which would X-hour a X-hour our in commercialization psilocybin, there experience is somewhere duration the hypothesis the and at the

tailored then sessions And also that specialized have be the would approach, patient at anorexia, would we example, a the modifying therapy from experience patients have so example. to then the approach for population these looking psychiatric then taking various a with what might that for which for PTSD, disorders undergoing for other we're we differ

Operator

Wainwright. question Trucchio the next of Our from comes Patrick from line H.C.

Patrick Trucchio

follow-up of couple I a have questions.

around to And trained I deliver many you past, us presently? can therapists need COMPXXX trained program? that of First, potential Secondly, to idea if have available in target? think I'm Phase years was on therapies time XXX launch. think for U.S. remains III trained lastly, in the the to potential how ahead? that the many And the you pivotal have tell do the COMPXXX are track therapists to deliver how in at you're many you'll wondering if therapists

George Goldsmith

Thank you, here. Patrick, George

therapists are primary various the COMPXXX minus. conducting trained, TRD In others. it's well as both XX-plus And of number or the those terms trial of trials, for as approximately

We grow Phase will also to upon have which scope we III. and contingent that XXX determine the Phase that's we the program, be plans in size III into data obviously discussed go therapists Phase forward. of to over to as Obviously, go as IIb the

Again, have therapists, not rollout look long-term the to commenting that. we data. on of terms in for And the at we're

look model. to the We have at

as at this ultimate more. market. to we're commenting learn for so that be And will not number But we say point, on we able the

have also talk we psilocybin model publication effective as these therapy a of patients to key at our developed team and opportunities the to I in with, will about to training comment series challenges for that develop safe a had looking Frontiers we in using own provide as month past care well and that Psychiatry our this therapists academicians training COMPXXX. of the

Patrick Trucchio

I Got of on a it. then COMPXXX, TRD. indications it's beyond That's And the helpful. build-out have follow-up

the humans are some signal body I'm like being currently why tell indications indications? First, underway first in can in just psilocybin if the if these evaluating cluster And headache of studies studies disorder. us in regarding you particular be additional generating anorexia, and indications? chronic dysmorphic would wondering conducted the these these

is and can safety us a we with bipolar? secondly, particular you bar indications, these tell there's well as COMPASS or And the I effect for these looking efficacy additional should in And suppose a mind studies? and be some there studies then if investigator-initiated has that metric with size then other in

George Goldsmith

So all well-designed these studies. -- regulatory very are regulatory entrance design

If existed the So been prior mind. studies that with designed but they're path academic truly case, predominantly in the studies. not patients to often has have

of access at, because to looking requirements for first the regulators and our we're evidence patient to innovation. build So starting evidence-based commitment foremost, accelerate

of treatment need, terms again, to In resistance. criteria, unmet at often look areas where there's referred the as quite we high that's

we're of trials is for are and in issue Hopefully, resisting will our and innovation. so address we've encountered not who However, patients some treatment patients, that this a that's failure innovation the prototyping goal.

places at looking of and patients. we're from we believe reason benefit can high of of action mechanism mechanism So perspective areas we unmet need have a the and that where currently to a change

will, So selection criteria, that's our you for that. if

controlled move now, help will of well us so terms that right forth understand forward in are and space sizes In these effect studies, which we as whole studies. exploratory

And So the know bet. fit the into don't else the current as safety. if difficult safety And like in -- treatment looking assessing with this how we're collecting regulators to comment and paradigms. populations anyone on. patient at I for most on team always, way would to you help specific rigorous societies data can

Operator

Our line next Canaccord. the Kulkarni Sumant question from of comes from

Sumant Kulkarni

compounds a psilocybin property be of batters out lead. is new are your or intellectual MDD, you that gone And attempting question appear in-licensing other indications But the through you're novel derivatives, be soon such intellectual your patent filing investigator-initiated start could XXX center? on in to companies IP sheer specifically and in your from We've and and annual in play also the discovery XXX. the example? how disclosures TRD develop for on that position and My on indication, specific to seen We study Pages in trial number related laser-focused you know how to from property. as in given could

George Goldsmith

hand will I to that over Lars answering. for

Lars Wilde

on for obviously, any we thank we focus out the and unexpected novelty question. a your Sumant, And findings have you strong done. have protecting coming very IP and of work

including towards patent crystalline disorders. a received matter patent and claims attach polymorphic X of sleep neurological I psychiatric on date, treating then of form various to psilocybin our and we've pain think aware, to grants, high-purity you're composition that

different phases of key through psilocybin in think process. the with markets the application the technology and are combinations. therapy I structure working that, PCT through our obviously -- with combination Beyond we on And manufacturer, national formulations, our the

the expecting So we're future. in grants further patent

in And business meta complement obviously, are our as active then drug the driving that acquiring and these we're forth. on development looking we treatment-related very could claims composition participants, then you said, work discovery drug of forward talking efforts our to the doing that are own discovery, and market so potentially, front, of where in programs licensing, in then early And we're core protected patents programs. especially terms into development towards

Operator

of next Berenberg. comes question Our Esther Hong from the from line

Esther Hong

-- questions. So I've my got two

lot The first companies different since with psilocybin, there is IPO, coming forward be from COMPXXX. -- a that are some developing COMPASS' seem to so are more that including formulations

you speak landscape got was I And could follow-up. competitive So about a for COMPXXX? I've then wondering the if

George Goldsmith

on I probably a regulators in of the druggable whole COMPXXX with think to medicine. just possible, to appropriately, Lars to that's will and we've could focus continue But why with I days this. that and the start, earliest formulated been so confidence do substance will to highest that. quality working quality from patients develop have worldwide And was our

substance like to here, is So would our build and developed very Lars, that view protected that? we've on that. we a effective have you

Lars Wilde

that's great think George. I point, Yes, a

and And of we psilocybin and well and space, flattered we entrants we terms our our competitive It first protection, need be shows I and think the the by lot very execution to team, market we're the there further very seeing built COVID are huge regulatory terms activity by these promise feel solution. to the think a defend of the pandemic. are very field is field. global crisis, position of is focused that indeed Obviously, worsening the our position. our therapy in our of protected exacerbated patients property around mental in have other clearly, our only all that we focusing I already strategy, on and market confident is in which health some then intellectual of in terms the here in leaving new in We're for innovation.

George Goldsmith

think just build I for this here, moment. what's to really Esther, on just important I'd a quick And like

look really comprehensive the the clinical doing I is think and to building the to that that up have we preclinical, right? what providing committed are to And evidence, the companies here do at work, deeply evidence. organizations

look. can wide claims comfortable the think and last So so that generating at look the can patients were our focusing regulatory benefit year, XX for all ensure preclinical in the patient and actually range of they on IISs feel from if about actually I the and scenarios that example, evidence no place have that safety made. forth, being science to and make sure studies And other patients programs really to you path of those where

important address sites. and So in I finalize our with it's just think starting a and us science reason look now to regulators commitment not doing certainly is We're study a how this right to we global And U.S. that. at this we're XX problem, problem, is generation U.K. is at evidence problem. the not countries and scale. that what at is to for do and differentiates that our critically XX a It's

Esther Hong

very follow-up. Great. just then a That's And helpful.

see How is technology. developing data? digital could we company also the So When technology the possibly does a work?

George Goldsmith

developed being say as more we technology we commenting as We'll speak. on it. it to be That is about have further

that durability suggests to that this now. team address real accessible in from We really the that talented this a that forming order is to have, we early has significant incredibly need treatment. have issue all one right fact data make widely a we The

is helping one patients is with really don't we long relapse for coupled look durability provide to That, anticipating and which difficult with of things ways how patients of the is fact what that. that to most the we However, are at, that know set. patients, prevent there tools for need relapse

be the of idea is technology, months our predictive the having about care this of so really and And ahead. our preventative you'll and digital hearing in thrust more year strategy precision, and core

Operator

I'm the to showing I remarks. to over time, further back no this like would for At questions. turn call management closing

George Goldsmith

keeping with our Thank And interest to wanted everyone their commitment you look continued future thank and calls. for you engagement to we to forward and COMPASS help updated very patients. I on much.

Operator

this today's call. gentlemen, concludes conference you Ladies participating. Thank for and

disconnect. may You now

COMPASS Pathways (CMPS) 9 Mar 212020 Q4 Earnings call transcript