Compass Pathways Reports Q4 and Full-Year 2024 Financial Results
Compass Pathways plc (Nasdaq: CMPS), a leading biotechnology company focused on advancing mental health treatment, has announced its financial results for the fourth quarter and full year of 2024, alongside updates on its clinical and business progress. The company continues to build momentum in its mission to accelerate patient access to evidence-based mental health innovations.
CEO Commentary: “We are excited about the progress of our pivotal phase 3 COMP360 program in treatment-resistant depression (TRD), with the top-line 6-week data expected next quarter,” said Kabir Nath, CEO of Compass Pathways. “Additionally, we are leveraging the resources from our January financing to advance plans for a late-stage clinical program for PTSD. These efforts align with our commitment to delivering novel treatments for patients with TRD and PTSD, where the need for new therapies is critical.”
Business Highlights: Compass Pathways’ pivotal phase 3 clinical program for COMP360, a psilocybin-based treatment for treatment-resistant depression, is one of the largest randomized, controlled, double-blind psilocybin trials ever conducted. The first major milestone for this study is the expected release of the 6-week (primary endpoint) data in Q2 2025, followed by 26-week data from the COMP006 trial, anticipated in the second half of 2026.
In parallel, Compass is also working to design a late-stage clinical program to explore COMP360 for the treatment of post-traumatic stress disorder (PTSD). This represents a promising extension of the company’s innovative approach to mental health care.
Leadership Update: The company appointed Dr. Steve Levine as Chief Patient Officer, a role focused on ensuring that the needs of patients remain at the core of Compass Pathways’ strategy and execution.
Financial Performance: For the full year 2024, Compass Pathways reported a net loss of $155.1 million, or $2.30 per share, which included non-cash share-based compensation expense of $19.5 million. This compares to a net loss of $118.5 million, or $2.32 per share, in 2023. The increase in losses reflects higher research and development costs associated with the ongoing phase 3 clinical trials for COMP360, as well as a strategic reorganization initiated in Q4 2024.
For the fourth quarter of 2024, the company reported a net loss of $43.3 million, or $0.63 per share, compared to a net loss of $32.5 million, or $0.53 per share, in Q4 2023. The quarterly loss was driven by similar factors, with higher R&D expenses and personnel costs due to the expansion of the company’s clinical efforts.
Research and Development Expenses: R&D expenses for the full year 2024 were $119.0 million, up from $87.5 million in 2023, primarily due to the progression of COMP360’s phase 3 trials and the increase in headcount to support these efforts. For Q4 2024, R&D expenses were $32.1 million, an increase from $27.1 million in the same period last year.
General and Administrative Expenses: General and administrative expenses for the full year 2024 were $59.2 million, compared to $49.4 million in 2023. This rise was attributed to increased personnel costs to support corporate functions, one-time costs related to the strategic reorganization, and higher legal and professional fees. For Q4 2024, G&A expenses amounted to $16.3 million, up from $11.3 million in Q4 2023.
Cash Position and Liquidity: As of December 31, 2024, Compass Pathways had cash and cash equivalents of $165.1 million, a decrease from $220.2 million as of December 31, 2023. The company also had $30.2 million in debt at the end of 2024, slightly up from $28.8 million the previous year. Compass raised an additional $140.4 million in net cash during the first quarter of 2025.
Financial Guidance for 2025: Compass Pathways expects net cash used in operating activities for the full year 2025 to be between $120 million and $145 million. As of February 27, 2025, the company’s cash position is expected to be sufficient to cover its operating expenses and capital expenditures, at least through the planned 26-week data readout from the COMP006 trial, scheduled for the second half of 2026.
Conclusion: “2024 was a pivotal year for Compass Pathways, marked by key clinical milestones and strategic investments that will support our future growth,” said Kabir Nath. “We look forward to continuing our work to bring COMP360 to patients with treatment-resistant depression and PTSD, and we are committed to advancing innovation in mental health treatment.”
As Compass Pathways progresses with its groundbreaking clinical programs, the company remains focused on its mission of transforming mental health care and improving the lives of patients worldwide.
