COMPASS Pathways Q4 2024 Earnings Report

COMPASS Pathways EPS Results

• Actual EPS: -$0.63
• Consensus EPS: -$0.62
• Beat/Miss: Missed by -$0.01
• One Year Ago EPS: N/A

COMPASS Pathways Revenue Results

• Actual Revenue: N/A
• Expected Revenue: N/A
• Beat/Miss: N/A
• YoY Revenue Growth: N/A

COMPASS Pathways Announcement Details

• Quarter: Q4 2024
• Date: 2/27/2025
• Time: Before Market Opens
• Conference Call Date: Thursday, February 27, 2025
• Conference Call Time: 8:00AM ET

COMPASS Pathways (NASDAQ:CMPS) operates as a mental health care company in the United Kingdom and the United States. It develops COMP360, a psilocybin therapy that is in Phase III clinical trials for the treatment of treatment-resistant depression; and is in Phase II clinical trials for the treatment of post-traumatic stress disorder and anorexia nervosa. The company was formerly known as COMPASS Rx Limited and changed its name to COMPASS Pathways plc in August 2020. COMPASS Pathways plc was incorporated in 2020 and is headquartered in London, the United Kingdom.

COMPASS Pathways Q4 2024 Earnings Call Transcript

Presentation

[Operator]

Ladies and gentlemen, thank you for standing by, and welcome to the Compass Pass Binder Limited Fourth Quarter twenty twenty four Investor Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session. I will now hand today's call over to Steve Schultz, Senior Vice President of Investor Relations. Please go ahead, sir.

[Stephen Schultz, SVP - Investor Relations at COMPASS Pathways]

Welcome all of you and thank you for joining us today for our fourth quarter twenty twenty four results conference call. Again, my name is Steve Schultz, Senior Vice President of Investor Relations at Compass Pathways. Today, I'm joined by Kabir Nath, our Chief Executive Officer and Terry Laksam, our Chief Financial Officer, who will have prepared remarks. In addition, Doctor. Guy Goodwin, our Chief Medical Officer Laurie Engelbert, our Chief Commercial Officer and Doctor.

[Stephen Schultz, SVP - Investor Relations at COMPASS Pathways]

Steve Levine, our Chief Patient Officer will be available for the Q and A. The call is being recorded and will be available on the Compass Pathways Investor Relations website shortly after the conclusion of the call and will be available for a period of thirty days.

[Stephen Schultz, SVP - Investor Relations at COMPASS Pathways]

Before we begin, let me remind everyone that during the call today, the team will be making forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 as amended. You should not place undue reliance on these forward looking statements. Actual events or results could differ materially from those expressed or implied by any forward looking statements as a

[Stephen Schultz, SVP - Investor Relations at COMPASS Pathways]

result of various risks, uncertainties, and other factors, including those risks and uncertainties described under the heading Risk Factors in our most recent annual report on Form 10 ks filed with the U. S. Securities and Exchange Commission and in subsequent filings made by Compass with the SEC. Additionally, these forward looking statements represent our views only as of today and should not be relied upon as representing our views as of any subsequent date. We specifically disclaim any obligation to update or revise any forward looking statement even if our estimates or assumptions change.

[Stephen Schultz, SVP - Investor Relations at COMPASS Pathways]

I'll now hand the call over to Kabir Nath.

[Kabir Nath, Chief Executive Officer at COMPASS Pathways]

Thank you, Steve. Good day, everyone, and thank you for joining us. Let me begin by thanking our existing and new investors who participated in our financing last month. This not only positions us to complete the COM360 program in TRD, but also importantly allows us to progress a PTSD development program beyond the encouraging results from our open label Phase 2a study that we received last May. This will be an exciting couple of years for Compass with multiple upcoming data readouts and the January financing positions us well for success.

[Kabir Nath, Chief Executive Officer at COMPASS Pathways]

As we've guided to on the third quarter earnings call, we eagerly await the top line results from the six week primary endpoint from the five trial in the second quarter of this year. We've recruited over ninety percent of patients in the trial. So, we're within sight of the end of recruitment, which we will announce once enrollment is complete. As a reminder, when the top line results become available in the second quarter, we'll be disclosing three key efficacy measures for the six week primary endpoint. The MADRS effects difference between the arms, the associated P value and confidence intervals.

[Kabir Nath, Chief Executive Officer at COMPASS Pathways]

We believe that these data should provide investors with a clear understanding of the treatment effect and

[Kabir Nath, Chief Executive Officer at COMPASS Pathways]

if

[Kabir Nath, Chief Executive Officer at COMPASS Pathways]

positive together with our Phase 2b results provide a strong validation for the treatment potential for COM three sixty in TRD. From a safety standpoint given that the trial is continuing blinded through twenty six weeks, we'll provide a high level assessment from the independent DSMB which reviews unblinded safety data on a regular basis. For the six trial, which is the second Phase III trial, enrollment is going well. And the high throughput five sites will convert over to six sites upon completing enrollment in five. So, we're gaining momentum and we're excited for the twenty six week results of six to read out in the second half of twenty twenty six.

[Kabir Nath, Chief Executive Officer at COMPASS Pathways]

As mentioned earlier, given the recent financing, we're now able to resume the development of COM360 for PTSD and we're in the process of refining our plans for a late stage clinical program. We're working through the various questions to address as well as potential clinical designs, the scope of which is under discussion both internally and with external advisors. Our primary goals are to maximize the probability of success and to get COM360 to those who suffer from PTSD as quickly as possible. We look forward to updating you on our plans as they progress. Finally, on the commercial front, our strategic collaborations with select healthcare delivery organizations including interventional psychiatry networks are providing important insights into the various care settings, insights which we're using to inform our strategy for launch and post launch scaling.

[Kabir Nath, Chief Executive Officer at COMPASS Pathways]

Many of these organizations are delivering SPRAVATO now which is particularly helpful as we identify COP360 opportunities to scale within their operating models. While our Phase III data will give us full clarity on the COM three sixty profile, based on our data to date, we believe we will have a clinically differentiated treatment that is rapid acting with meaningful durability. Let me now hand the call over to Terry for the financial update.

[Teri Loxam, CFO, Principal Financial Officer & Principal Accounting Officer at COMPASS Pathways]

Thank you, Kabir. I'll now step through the full year financial results. Cash used in operations for the full year was $119,200,000 within the guidance range that we provided last year of $114,000,000 to $120,000,000 For the year ended 12/31/2024, net loss was $155,100,000 or $2.3 per share compared with a net loss of $118,500,000 or $2.32 per share during the same period in 2023. These results include non cash share based compensation of $19,500,000 in twenty twenty four and seventeen point three million dollars in 2023. R and D expenses were $119,000,000 in 2024, compared with $87,500,000 in the prior year.

[Teri Loxam, CFO, Principal Financial Officer & Principal Accounting Officer at COMPASS Pathways]

G and A expenses were $59,200,000 in 2024, compared with $49,400,000 in the prior year. Debt under the Hercules loan facility was $30,200,000 at the end of the fourth quarter. At 12/31/2024, we had cash and cash equivalents of $165,100,000 As Kamvir mentioned, in January of this year, we completed a financing which resulted in net proceeds of approximately $140,000,000 which together with the $165,000,000 of cash that we had at the end of the year provides us runway to fund our operations at least through the planned twenty six week data readout from our COMP006 study which is expected in the second half of twenty twenty six. Regarding 2025 financial guidance, we expect net cash used in operations for the full year of 2025 to be within the range of $120,000,000 to $145,000,000 Thank you, and I'll now turn the call back over to Kabir.

[Kabir Nath, Chief Executive Officer at COMPASS Pathways]

Thank you, Terry. We have an exciting couple of years ahead with multiple data readouts from our pivotal Phase III program. For five, we expect to report the top line six week primary endpoint data towards the end of next quarter and then the twenty six week data once all six participants have completed Part A of that trial. For that six trial, we expect to disclose the twenty six week results in the second half of twenty twenty six. In parallel, we're continuing to prepare for the launch of this potentially paradigm changing treatment.

[Kabir Nath, Chief Executive Officer at COMPASS Pathways]

Given the high unmet need and limited current treatment options, we see significant commercial opportunities in TRD and PTSD. As mentioned at the beginning of the call, Doctor. Guy Goodwin, Laurie Engelbert and Doctor. Steve Levine will also be available for Q and A. Thank you.

[Kabir Nath, Chief Executive Officer at COMPASS Pathways]

And I will now turn the call back to the operator for Q and A.

[Operator]

Your first question is from the line of Gavin Clark Gartner with Evercore ISI.

[Gavin Clark-Gartner, Director - Biotechnology Equity Research at Evercore ISI]

Hey, guys. Thanks for taking the question. So I believe the six week Madras delta in the Phase 2b was a bit above five points. Do you think that should be a reasonable bar for the five initial top line?

[Kabir Nath, Chief Executive Officer at COMPASS Pathways]

Hi, Gavin. It's Kabir. And just to check, you can hear us clearly?

[Gavin Clark-Gartner, Director - Biotechnology Equity Research at Evercore ISI]

Yes. We can.

[Kabir Nath, Chief Executive Officer at COMPASS Pathways]

Great. Thank you. Yeah. So as we've I think consistently said, we have used the phase 2b and that six week data for the phase 2b as the benchmark, for how we plan the powering for the phase three studies. So I think what you said is reasonable.

[Kabir Nath, Chief Executive Officer at COMPASS Pathways]

Again, a reminder that clinically meaningful is a significantly lower number in terms of effect size. But, yeah, that that is the guide that we have used in in planning the phase three.

[Gavin Clark-Gartner, Director - Biotechnology Equity Research at Evercore ISI]

Okay. Great. And just on the PTSD side, maybe you could just frame, for the upcoming advisory committee meeting, if there's anything, you're looking to learn that'll inform your development. Thank you.

[Kabir Nath, Chief Executive Officer at COMPASS Pathways]

Thanks. So the the the upcoming Brex Adcom meeting, you mean. Yes?

[Gavin Clark-Gartner, Director - Biotechnology Equity Research at Evercore ISI]

Yes. Correct.

[Kabir Nath, Chief Executive Officer at COMPASS Pathways]

Yes. Guy?

[Guy Goodwin, Chief Medical Officer at COMPASS Pathways]

Well, we'll be interested in, basically, how they view the patient population. That's something that requires a certain amount of thought with PTSD because of the spread of different kinds of trauma that, result in PTSD and also the complexity of some of the lives, the early lives of patients who develop PTSD. So I think that's one of the key things. Obviously, we will be interested in how they view, the issue of the actual difference in the scores, the CAHPS5, which is still a relatively new endpoint for use both clinically and in research and indeed in regulatory trials. So how they interpret changes in that, in terms of remission response, I think that will be informative for us and will guide us in how we think about our studies.

[Guy Goodwin, Chief Medical Officer at COMPASS Pathways]

I don't think beyond that, given the fact that the placebo arm here will be daily placebo, it doesn't really offer us a great deal of guidance as to what our placebo response might look like. So there are limitations, but we'll, of course, be tuning in.

[Gavin Clark-Gartner, Director - Biotechnology Equity Research at Evercore ISI]

Great. Thank you.

[Kabir Nath, Chief Executive Officer at COMPASS Pathways]

Thanks, Gavin.

[Operator]

Your next question is from the line of Paul Matteis with Stathos.

[Julian Pino, Senior Associate - Biotechnology Equity Research at Stifel Financial Corp]

Hey, there. This is Julian on for Paul. Thanks a lot for taking our question. I guess, can you just talk a little bit about what's actually going to be disclosed in the top line for the upcoming COMP five readout? I know you talked about some high level safety as well as potential commentary from a DSMB on suicidal ideation.

[Julian Pino, Senior Associate - Biotechnology Equity Research at Stifel Financial Corp]

So just any commentary on that would be helpful. And then also, just any color on enrollment? Are these studies still enrolling, and and are you on track? Thank you.

[Kabir Nath, Chief Executive Officer at COMPASS Pathways]

No. Thanks. Happy to take both of those. So, yeah, in terms of what we will be disclosing, as as we've said consistently from an efficacy perspective, with the six week data, it is gonna be the MADRS effect size, the difference between the arms, the p value, and confidence interval that's associated with that effect size difference. From a safety perspective, as you've said, it will be a statement from the DSMB, including specifically as to whether they see anything clinically concerning in terms of imbalance on suicidal ideation.

[Kabir Nath, Chief Executive Officer at COMPASS Pathways]

And just a reminder, the DSMB is seeing unblinded safety data on a regular basis, most recently this month, in fact, and have just preceded us to direct without change, without amendment. And in terms of recruitment, as I said on the call, for five, we are now over 90% recruited for that trial. So we're very much within sight at the end of that. Six is continuing to recruit well. One of the factors there is, as we've said, high performing five sites will roll over into six.

[Kabir Nath, Chief Executive Officer at COMPASS Pathways]

And that's a process that, again, we now can start planning with exquisite detail. And so we continue to be on track now for twenty six week data for six in the second half of twenty twenty six.

[Operator]

Your next question comes from the line of Charles Duncan with Cantor. There's no response from Mr. Duncan's line. We'll go to the next question. Your next question is from the line of Ritu Baral with TD Cowen.

[Ritu Baral, MD & Senior Biotechnology Analyst at TD Cowen]

Hi guys. Thanks for taking the question. Kabir, what else will we get with top line as far as additional analysis? Will we still get, remissions, responses? And how will that play?

[Ritu Baral, MD & Senior Biotechnology Analyst at TD Cowen]

How do you think the relative importance will play both to regulators and clinicians, in relation to sort of the top line Madras means? And will we be getting any secondary scales as well?

[Kabir Nath, Chief Executive Officer at COMPASS Pathways]

Thanks, Richard. So no, to be clear, with the six week data, we are not going to be getting any secondaries. We're not actually going to be getting remission response or anything else. It is literally just going to be the effect size difference on Madras with the six week data.

[Ritu Baral, MD & Senior Biotechnology Analyst at TD Cowen]

Got it. And then as you are at ninety percent enrolled, how has the patient disposition and demographic shaped up to your expectations? Can you talk about, what percentage has finally come in on background SSRIs and how that may or may not impact the final, efficacy and tolerability data that comes out?

[Guy Goodwin, Chief Medical Officer at COMPASS Pathways]

Thanks, Maria. We aren't seeing that broken down in detail as it goes. My impression is just from the numbers of patients in washout, that we're seeing a similar kind of number to what we saw in the phase two. But I can't give you the precise statistic on that. In other respects, we aren't looking, again, as we go, at details of the, for example, comorbidities, the drugs actually used, the numbers of exposures.

[Guy Goodwin, Chief Medical Officer at COMPASS Pathways]

We're just not looking at that as we go. That's not been part of our protocol.

[Ritu Baral, MD & Senior Biotechnology Analyst at TD Cowen]

Got it. And will you release with top line what the powering of the study was designed to be?

[Guy Goodwin, Chief Medical Officer at COMPASS Pathways]

Yes. I guess, if you're interested, we'd be happy to share that, yes,

[Kabir Nath, Chief Executive Officer at COMPASS Pathways]

once we have the data. Yeah.

[Ritu Baral, MD & Senior Biotechnology Analyst at TD Cowen]

Once you have okay. Thank you. Thanks for taking the questions.

[Kabir Nath, Chief Executive Officer at COMPASS Pathways]

Thanks, Ritu.

[Operator]

Your next question is from the line of Charles Duncan with Cantor.

[Charles Duncan, Analyst at Cantor Fitzgerald]

Hi. Hopefully, you can hear me. Kappir, team, thanks for taking the question. Congrats on

[Charles Duncan, Analyst at Cantor Fitzgerald]

the progress.

[Charles Duncan, Analyst at Cantor Fitzgerald]

Appreciate the added color. Wanted to follow-up on a previous question with regard to top line four zero five, and the recent DSMB meeting. I guess I'm wondering if you could provide a little bit of color, what you would anticipate in terms of suicidal ideation. We've talked about that in the past. I know it happens in this patient population, but provide a little more information on on what you would have expected out of this patient population.

[Guy Goodwin, Chief Medical Officer at COMPASS Pathways]

Hi, Charles. Sky here. I mean, we do expect to see suicidal ideation. And as you know, we're collecting it on a systematic basis using the Columbia rating scale. In due course, we'll be able to summarize for the whole population the extent to which we saw suicidality using that scale.

[Guy Goodwin, Chief Medical Officer at COMPASS Pathways]

Obviously, the the serious adverse events that we collect have to be contextualized, and that is what the DSMB is able to do because it's unblinded. We can't do that from our own perspective, so we rely on their clinical judgment to decide that there is no clear reason to think that what what is happening in the trial represents a signal of danger. So that essentially, we rely on their clinical judgment to look at all of the information, and we have to trust what they feed back to us.

[Teri Loxam, CFO, Principal Financial Officer & Principal Accounting Officer at COMPASS Pathways]

And Guy, it's probably worth you adding that the reason we might see suicidal ideation is because

[Teri Loxam, CFO, Principal Financial Officer & Principal Accounting Officer at COMPASS Pathways]

of the patient population. So you

[Teri Loxam, CFO, Principal Financial Officer & Principal Accounting Officer at COMPASS Pathways]

may want to expand on that and it's

[Teri Loxam, CFO, Principal Financial Officer & Principal Accounting Officer at COMPASS Pathways]

not necessarily part of our drug.

[Guy Goodwin, Chief Medical Officer at COMPASS Pathways]

Yeah. No. I mean, I was sort of taking that as read, but perhaps that needs to be restated that depression has inherently carries with it suicidality and suicidality carries with it the risk of attempted or completed suicide. So any study that enrolls a large number of patients with treatment resistant depression in particular is running that risk. Obviously, we are trying to ensure that that risk is minimal for the individuals who enter the study but the there is no doubt that the condition carries the risk.

[Charles Duncan, Analyst at Cantor Fitzgerald]

Yeah, that makes sense. I I get that. But with regard to the DSMB review, they have been looking at if there are any any events and, tracking that. And and you would know that if if there were. Correct?

[Guy Goodwin, Chief Medical Officer at COMPASS Pathways]

We we would know if they they were concerned about the events that have occurred and that they have full information about. Yeah.

[Charles Duncan, Analyst at Cantor Fitzgerald]

Okay. Very good. Thanks for taking the question.

[Operator]

Your next question is from the line of Leonor Timoshenko with RBC.

[Leonid Timashev, Biotechnology Analyst at RBC Capital Markets]

Hey guys, thanks for taking my question. I just want to talk a little bit about the durability aspect again. Can you remind us, first of all, how you're measuring durability, if patients start other medication after receiving their, COM three sixty dose? And then I guess maybe the second part is, on the more practical and real world side, is it still a win that the patient starts like an SSRI or something after receiving their dose? I mean, how does the FDA think about that?

[Leonid Timashev, Biotechnology Analyst at RBC Capital Markets]

And I guess, how are you guys thinking in the future if someone chooses to start a different medication maybe to you know, retain their response rather than coming back to get another dose of COM three sixty? Thanks.

[Guy Goodwin, Chief Medical Officer at COMPASS Pathways]

Okay. Well, I guess the most obvious way in which we see durability is that we know that we see a very early response, and that we see in many cases of that in the phase two study that that response was maintained as a change in the MADRS from baseline over many weeks up to twelve weeks. As you know, we followed patients. There is another sense of course in which one can look at durability and you've implied it, the time to an intervention for a new treatment and we will be capturing that and indeed we captured that in our phase two and that data will soon be publicly available in a publication. But that is one of the ways we will also be capturing the time to new treatment.

[Guy Goodwin, Chief Medical Officer at COMPASS Pathways]

That new treatment in our study doesn't affect the conduct of the study. The patients remain with us and are followed up within our fifty two week protocol. What the FDA's attitude to that is not obviously something I can comment on. We will deliver the data to them and they'll reach a judgment. But I think I can speak from a clinical perspective that I wouldn't be surprised if patients who make a good symptomatic response may actually want to go on to maintenance antidepressants.

[Guy Goodwin, Chief Medical Officer at COMPASS Pathways]

I think that would be very unsurprising if that happened. And therefore, it may very well be that that is one of the ways in which durability can be attained.

[Operator]

Your next question is from the line of Francois Brisebois with Oppenheimer. Francois, your line is open. Please make sure you do not have yourself on mute. There is no response from Francois's line. We'll go to the next question.

[Operator]

Patrick Trebois with H. C. Wainwright.

[Patrick Trucchio, Managing Director at H.C. Wainwright & Co.]

Thanks. Good morning. A couple of follow-up questions from me. I guess the first one would just be on the COMP005 readout. What would be considered a clinically meaningful improvement in the MADRS total score at six weeks?

[Patrick Trucchio, Managing Director at H.C. Wainwright & Co.]

And how should we contextualize the results in relation to prior trials with psilocybin and other TRD treatments? And secondly, I was just wondering if you could provide some details on the psychological support model, the implementation and how this sort of is different from what we saw with the Lycos experience and just in terms of how we should think about the psychological support model from a regulatory perspective, but then also in terms of a, you know, scale up and commercialization perspective.

[Kabir Nath, Chief Executive Officer at COMPASS Pathways]

Thanks, Patrick. So a couple of questions in there, and I'll hand to Guy. But just before that, just just a reminder, you're not gonna see the Madras effect difference on the active arm. We're gonna see the difference between the arms, just to be clear on that. So again, just a reminder of that.

[Kabir Nath, Chief Executive Officer at COMPASS Pathways]

But then let me pass to Guy to comment on that, on and initially on the psychological support side, and then to Laurie to talk about that from a scaling perspective.

[Guy Goodwin, Chief Medical Officer at COMPASS Pathways]

Yeah. I I mean, I I can't really add much more to what Kabir said on the difference, because we won't really be reporting that. As you've seen in our phase two study, the immediate change was of the order of 13 points on the Madras. And of course, we'd be very happy if we saw that again. I think on the the psychological support model, I think what it's important to understand is that what we're trying to do is to make it easy for the FDA to understand the drug's effects in isolation from any potential efficacy from psychotherapy.

[Guy Goodwin, Chief Medical Officer at COMPASS Pathways]

And so for that reason, we have simplified the support we offer to patients so that it essentially gives them the information they need for the experience. It supports them on the day, and it gives a chance for them to talk about it afterwards. We are systematizing our approach to a considerable degree and we're monitoring all of the sessions so that we will be able to ensure that the people sitting with the patients do follow exactly what we have trained them to do. And what we have trained them to do is essentially to follow a protocol that is really unlike clinical practice. And it's very much more about following a trial protocol.

[Guy Goodwin, Chief Medical Officer at COMPASS Pathways]

And that has required a certain amount of retraining, frankly, for patients who come in with more assumptions about psychotherapy. So that's our approach to the trials. I'll pass to Laurie who may want to comment on the implications for clinic EMT.

[Lori Englebert, Chief Commercial Officer at COMPASS Pathways]

Yeah. I think, you know, what Guy said in terms of the purpose of the support model is that we are making sure that patients have support through through the, you know, drug administration as well as prior to drug administration and after drug administration. And at launch and hopefully to end up to scale up as well, we don't expect that to be very different than what the REMS requirements are for SPRAVATO right now and that that will only be limited to a licensed health care provider. And we will not be constrained to to therapist at the time.

[Steve Levine, Chief Patient Officer at COMPASS Pathways]

And just one thing to add. This is Steve Levine. It's also worth saying that to be trained in a new treatment or a new protocol is common across medicine, not just in psychiatry. And so this is also one of the areas where we're able to focus in learning from our strategic collaboration partners, which encompass a handful of organizations that hundreds of sites to understand who is being trained within the organization right now, how they're being trained, how they allocate budgets for that training. So we'll be very informed in terms of real world training as we think about how this moves into real world care settings.

[Operator]

Your next question is from the line of Frank Bisbois with Oppenheimer.

[François Brisebois, Managing Director, Senior Biotechnology Research Analyst at Oppenheimer & Co. Inc.]

Sorry. Can you guys hear me now?

[Kabir Nath, Chief Executive Officer at COMPASS Pathways]

We can, Frank. Yes.

[François Brisebois, Managing Director, Senior Biotechnology Research Analyst at Oppenheimer & Co. Inc.]

Oh, okay. Wow. Okay. Sorry. I've had some IT issues.

[François Brisebois, Managing Director, Senior Biotechnology Research Analyst at Oppenheimer & Co. Inc.]

And sorry if this was mentioned as well. But I was just wondering if you can, you know, with Steve, making a comment there, just a little more on this this role of chief patient officer and what led to that and what exactly that implies. Thank you.

[Steve Levine, Chief Patient Officer at COMPASS Pathways]

Thank you for asking that question. I'm very happy to answer that. As a psychiatrist by background, really happy to see that COMPASS has placed such an emphasis on ensuring that both the patient, particularly the patient, but both the patient and healthcare providers' perspectives are incorporated into everything that we think about and plan, whether it's the design of our trials or thinking ahead to a post approval environment where this actually is delivered to patients by licensed healthcare providers. And so that's really broadly where I'm focused, is involved widely across the organization and ensuring that those voices are reflected and that there's a realistic perspective on what may be needed outside of the relatively rarefied environment of clinical trials as this moves into real world patient settings and actually gets to patients.

[Kabir Nath, Chief Executive Officer at COMPASS Pathways]

Yeah. And I think, Frank, I mean, I think it's self evident that a psilocybin experience is a very diff we we talk about a paradigm changing, approach, and it absolutely is a paradigm changing approach, specifically from the point of view of the patient and that we're supporting some pretty vulnerable patient populations through what can be a challenging experience. So having somebody of Steve's caliber and experience really advocate for that and stand for that within the company, we felt was really important. And who better to have than Steve to do it?

[François Brisebois, Managing Director, Senior Biotechnology Research Analyst at Oppenheimer & Co. Inc.]

Okay. Great. And then just on the o o five, in terms of timing of twenty six week data, can you just help us, you know, just remind us what what you're sharing here about part a and enrollment and, you know, when o six, twenty six week comes out? Just how how should we, best guess, o five to six week data, for timing? Thank you.

[Kabir Nath, Chief Executive Officer at COMPASS Pathways]

So I'm happy to invite you to continue to guess, Frank. I mean, what we have said clearly is the twenty six weeks of five will be gated at a minimum on part a completion of six. As you know, for six, we're we we've given a fairly wide range for guidance for the twenty six weeks for now in the second half of twenty twenty six. But obviously, as we get clearer on o o six enrollment and timelines, we're in a position to give more specific guidance also around the twenty six weeks of o five. But for now, we're not giving specific timing guidance around that.

[François Brisebois, Managing Director, Senior Biotechnology Research Analyst at Oppenheimer & Co. Inc.]

Okay. I'll keep guessing. Thank you.

[Operator]

Your next question is from the line of Vikram Prahirat with Morgan Stanley. Vikram, your line is open. There's no response. We'll go to the next question. Sumat Kulkarni with Canaccord Genuity.

[Sumant Kulkarni, Managing Director at Canaccord Genuity Group]

Hi, thanks for taking our questions. I actually have three. So there was an earlier question on point separation on the Mater scale, but do you think that COM three sixty might need to hit some higher bar relative to what is considered conventionally clinically relevant on meders to be successful in the real world? Or would the non chronic dosing paradigm more than outweigh that scenario?

[Kabir Nath, Chief Executive Officer at COMPASS Pathways]

So I'll hand to Guy. But just as a reminder, I mean, this is TRD, Suman, not MDD. And, you know, there's precisely two approved drugs in TRD. I mean, this is the guy.

[Guy Goodwin, Chief Medical Officer at COMPASS Pathways]

Well, I think I think that's the honest answer, actually, that the the the the yardstick doesn't really exist to anything like the extent that it extent that it exists in MDD. Is there anything else we should say on that? I mean, I

[Lori Englebert, Chief Commercial Officer at COMPASS Pathways]

No. So it's a lower bar.

[Kabir Nath, Chief Executive Officer at COMPASS Pathways]

Yes. If anything, it will be a lower bar for TRD versus MDD.

[Sumant Kulkarni, Managing Director at Canaccord Genuity Group]

Understood. So now with the understanding that COM three sixty is relatively far ahead in terms of your potential ability to get to the market, how is your thinking evolved on how the product might be able to compete with other psychedelic compounds that require shorter times in the clinic, given that we've seen some phase two data from five me or DMT, for example?

[Steve Levine, Chief Patient Officer at COMPASS Pathways]

Hi, this is Steve. I'll take that one. Thank you. You know, I think in terms of considering what drives decision making from healthcare providers, amongst many considerations, key amongst them are the economics, whether this is an economically viable and hopefully attractive proposition for them. And so with that, it really highlights the work that we did on procuring new category three CPT codes, which are specific for the administration day and the support provided on that day.

[Steve Levine, Chief Patient Officer at COMPASS Pathways]

And as a reminder, those codes can be used across a range of psychedelic treatments if approved, and they're reported on an hour by hour basis. And so regardless of the length of the treatment, we anticipate that healthcare providers will be reimbursed for the providers, for the services provided.

[Lori Englebert, Chief Commercial Officer at COMPASS Pathways]

I also just wanna add, if you don't mind, Sumant, that, you know, we need to think about the indications that some of these will be approved for. And right now, TRD, our indication will be the only TRD on the product for quite some time, regardless as a psychedelic.

[Sumant Kulkarni, Managing Director at Canaccord Genuity Group]

Got it. And my last question, there seems to be some enthusiasm around support for psychedelic medicine at very high levels in the current political environment. But how would you say that any changes either in terms of personnel or morale at the FDA have affected the tone of your recent interactions with the agency, if any? Or any predictions you might have there on what that might mean as you head into a potential regulatory process here?

[Kabir Nath, Chief Executive Officer at COMPASS Pathways]

Thank you, Samantha. It's it is a great question. And, I mean, the straight answer is we don't yet know, to be clear. But, obviously, we are tracking things very closely. I think our our overall perspective is, at worst, some of these changes are neutral.

[Kabir Nath, Chief Executive Officer at COMPASS Pathways]

And, potentially, there's some positive tailwinds in this. And if you think about an area we haven't really focused on, for instance, PTSD, the combination of that, the influence of veterans organizations and so on, you can see that clearly in that space, that could be a a tailwind. So far, in terms of FDA interaction, there is no change for us to comment on.

[Sumant Kulkarni, Managing Director at Canaccord Genuity Group]

Thank you. That's very helpful.

[Operator]

Your next question is from the line of Jason McCarthy with Maxim Group.

[Michael Okunewitch, Senior Biotechnology Analyst at Maxim Group]

Hey, guys. This is Michael Oktienowitsch on the line. Thank you so much for taking my questions today. I guess just to start off, I'd like to see if you could talk a little bit more about your pipeline plans. You did mention you're designing a late stage study in PTSD.

[Michael Okunewitch, Senior Biotechnology Analyst at Maxim Group]

Can you talk about some of the other indications that you're working on? I know anorexia has been, a target for a while.

[Kabir Nath, Chief Executive Officer at COMPASS Pathways]

Sure. So the anorexia study, we have completed that closed enrollment, and we will expect to see data sometime in 2025 on that. We have a number of IISs that we've conducted in the past that have given us interesting signals and other indications. But right now, from, you know, the, you know, a full steam development ahead, our focus is on TRD and PTSD.

[Michael Okunewitch, Senior Biotechnology Analyst at Maxim Group]

All right. Thank you. And then just

[Michael Okunewitch, Senior Biotechnology Analyst at Maxim Group]

I want to see if you

[Michael Okunewitch, Senior Biotechnology Analyst at Maxim Group]

could comment on, you know, just given the recent rise we've seen in adoption on SPRAVATO, it did more than $1,000,000,000 this year. Do you think that having another interventional, psychiatric therapeutic in TRD could help prepare the market for something like Comp three sixty?

[Lori Englebert, Chief Commercial Officer at COMPASS Pathways]

We absolutely do. So J and J has done a great job of really preparing and educating HDPs on what TRD actually is. And as a reminder, TRD is broadly referred to as the failure of two prior antidepressants. And what we are seeing and and, you know, what we're thinking about with Spravato is if you think about the addressable patient population, which is probably around about three million MDD patients right now, SPRAVATO has less than two percent of patients in that TRD patient population. So any, you know, additional, you know, success on the Spravato side only, you know, bodes well for for us coming to market.

[Michael Okunewitch, Senior Biotechnology Analyst at Maxim Group]

Alright. Thank you very much for taking my questions and congrats on the progress.

[Kabir Nath, Chief Executive Officer at COMPASS Pathways]

Thanks, Mike.

[Operator]

Your next question is from the line of Vikram Prahit with Morgan Stanley.

[Morgan Gryga, Biotech Equity Research Associate at Morgan Stanley]

Hi, everyone. Can you hear me?

[Kabir Nath, Chief Executive Officer at COMPASS Pathways]

Yes.

[Morgan Gryga, Biotech Equity Research Associate at Morgan Stanley]

Great. This is Morgan on for Vikram. So two from us for PTSD. One, could you walk

[Morgan Gryga, Biotech Equity Research Associate at Morgan Stanley]

us through how you prioritize PTSD over the other indications like bipolar disorder that you're exploring in different IISs? And then on the path to filing for PTSD, what do you imagine that looking like in terms of studies, patients, number of patients

[Morgan Gryga, Biotech Equity Research Associate at Morgan Stanley]

and what level of follow-up data do you think is needed? Thank you.

[Kabir Nath, Chief Executive Officer at COMPASS Pathways]

Yes. Thanks, Morgan. So I mean, I think PTSD, as you'll be aware, nothing has been approved for more than twenty years in PTSD. So it's in terms of true unmet need, the scale of the problem and kind of the intensity of the focus around the problem. It was clear to us that particularly having seen the signal in our phase 2a, this was an area that both from a medical and therefore from a commercial perspective rose absolutely to the top of the priority list.

[Kabir Nath, Chief Executive Officer at COMPASS Pathways]

So that's hence the focus on PTSD ahead of any other indication. I'll hand to Guy to talk a little more around the development regulatory side.

[Guy Goodwin, Chief Medical Officer at COMPASS Pathways]

Yes. I I mean, we are obviously in the process of thinking carefully about that. I can't say that we're yet fixed on one way to go. I mean, we expect to have a meeting with the FDA to thrash that out at some point. And we've obviously developed a number of scenarios with the way we could could actually develop the the treatment in in in in PTSD.

[Guy Goodwin, Chief Medical Officer at COMPASS Pathways]

I mean, the patient population, you know, we're also have gonna have a little bit of guidance of the from the FDA's attitude from the AdCom that's going to take place for brexpiprazole, which we'll obviously be following and that will maybe give us some insight into the way the patient population in particular is, is observed. So yeah, we're looking forward to an exciting year with this. I mean, the other indications that you mentioned, for example, bipolar two disorder, are a little more difficult simply because of co medication and the complexity of the condition. PTSD, as, Kabir has indicated, has this massive unmet need. There are very little available.

[Guy Goodwin, Chief Medical Officer at COMPASS Pathways]

And we have this really very encouraging data that saves so durability after a single administration. So I think that's clearly the first place to go. We have no doubt in our minds about that.

[Lori Englebert, Chief Commercial Officer at COMPASS Pathways]

Yeah. Morgan, hey. It's Laurie. If you don't mind, I'll just add a little bit of additional color. It is a very highly prevalent population as well.

[Lori Englebert, Chief Commercial Officer at COMPASS Pathways]

There are about thirteen million patients, out there. And as Guy mentioned, very limited options. There are actually only two FDA approved products for PTSD right now. And as as Kabir mentioned, it's been a very long time since innovation has happened in the market.

[Morgan Gryga, Biotech Equity Research Associate at Morgan Stanley]

Thank you.

[Operator]

Your next question is from the line of Frank Grisbois with Oppenheimer.

[François Brisebois, Managing Director, Senior Biotechnology Research Analyst at Oppenheimer & Co. Inc.]

Hey, sorry. Just an extra one here. On the DSMB side, the comment you made that you just had, recently, you you remind us what exactly you said of how recent that interaction was. And being 90% enrolled, I is it fair to assume that there are no more DSMB looks at this until readout? Or could there be one more?

[Kabir Nath, Chief Executive Officer at COMPASS Pathways]

So, as in recent, it's this month as it was in February. So that's how recent the the last is. I guess, you know, as to the kind of the quarterly cadence versus when we actually have top line in hand, that we will see what happens in the course of next quarter. But I mean, the regular cadence is quarterly.

[Operator]

At this time, there are no further questions. I will now hand the call back over to management for closing remarks.

[Kabir Nath, Chief Executive Officer at COMPASS Pathways]

Thanks very much. So thanks everyone for your time and attention today. As we said, we're at the start of a very exciting couple of years for Compass with multiple data readouts between now and the latter part of 2026. And in particular, we're excited about the five top line that we expect to see towards the end of next quarter. So thanks, everyone.

[Kabir Nath, Chief Executive Officer at COMPASS Pathways]

Thanks for your time.

[Operator]

This concludes today's call. Thank you for joining. You may now disconnect your lines.

Participants

Executives

• Stephen Schultz, SVP - Investor Relations
• Kabir Nath, Chief Executive Officer
• Teri Loxam, CFO, Principal Financial Officer & Principal Accounting Officer
• Guy Goodwin, Chief Medical Officer
• Lori Englebert, Chief Commercial Officer
• Steve Levine, Chief Patient Officer

Analysts

• Gavin Clark-Gartner, Director - Biotechnology Equity Research at Evercore ISI
• Julian Pino, Senior Associate - Biotechnology Equity Research at Stifel Financial Corp
• Ritu Baral, MD & Senior Biotechnology Analyst at TD Cowen
• Charles Duncan, Analyst at Cantor Fitzgerald
• Leonid Timashev, Biotechnology Analyst at RBC Capital Markets
• Patrick Trucchio, Managing Director at H.C. Wainwright & Co.
• François Brisebois, Managing Director, Senior Biotechnology Research Analyst at Oppenheimer & Co. Inc.
• Sumant Kulkarni, Managing Director at Canaccord Genuity Group
• Michael Okunewitch, Senior Biotechnology Analyst at Maxim Group
• Morgan Gryga, Biotech Equity Research Associate at Morgan Stanley