- 2 years ago
Treatment-resistant depression, also referred to as TRD, is a subset of depression that poses significant challenges for clinicians, patients and those closest to patients. It is characterized by persistent symptoms of depression that do not respond adequately to at least two different standard antidepressant treatments. This debilitating condition often leaves individuals grappling with feelings of despair, hopelessness and a diminished quality of life.
Unlike some forms of depression that may improve with pharmacological interventions or talk therapies, TRD tends to persist, leading to a multitude of negative consequences. The unyielding nature of this condition can contribute to increased rates of disability, higher suicide risk and significant financial burden due to the need for repeated treatments. Psilocybin treatment is emerging as a potentially effective approach to the treatment of TRD.
Although further research is still needed to establish its efficacy and safety, initial findings are promising. While there are a number of companies developing psilocybin treatments, Compass Pathways (NASDAQ: CMPS) is setting itself apart from its contemporaries with its phase 3 program in TRD.
Unlike some forms of depression that may improve with pharmacological interventions or talk therapies, TRD tends to persist, leading to a multitude of negative consequences. The unyielding nature of this condition can contribute to increased rates of disability, higher suicide risk and significant financial burden due to the need for repeated treatments. Psilocybin treatment is emerging as a potentially effective approach to the treatment of TRD.
Although further research is still needed to establish its efficacy and safety, initial findings are promising. While there are a number of companies developing psilocybin treatments, Compass Pathways (NASDAQ: CMPS) is setting itself apart from its contemporaries with its phase 3 program in TRD.
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NewsTranscript
00:00 (upbeat music)
00:02 - Welcome, it's Michael Marouth-Benzinga,
00:03 joined here today by Kabir Nod,
00:05 the CEO of Compass Pathways.
00:07 Kabir, great to have you with us, how are you?
00:08 - Great, thank you, thanks Michael, good to join you.
00:11 - Excited to have you and the team from Compass
00:12 here with us to learn a little bit more about the company.
00:15 Let's go ahead and start with that.
00:16 Can you give us a brief overview of Compass
00:18 and what you do with the company?
00:20 - Absolutely, so Compass Pathways
00:22 is a biotechnology company that is focused
00:25 on the development of psilocybin,
00:28 a proprietary synthetic formulation of psilocybin,
00:31 which is the ingredient found in magic mushrooms,
00:34 and we're developing that for the treatment
00:36 of a number of serious mental illnesses,
00:39 such as treatment-resistant depression,
00:41 anorexia nervosa, and PTSD.
00:44 And I'm the CEO of the company.
00:46 - Outstanding.
00:47 Let's talk a little bit about the team too, Kabir.
00:49 Who is on the leadership team?
00:50 What experience do they bring,
00:51 especially in regards to psychedelics?
00:54 - So we have a very experienced leadership team
00:56 that actually has people with pharmaceutical experience,
00:59 biotech experience, also across the digital area,
01:03 which is an area that we're focused on as well.
01:05 Our chief medical officer, Dr. Guy Goodwin,
01:08 was actually the person who designed
01:09 our phase 2B study for COM 360.
01:12 He was the principal investigator on that study,
01:15 and therefore he is somebody
01:16 who really understands this space well.
01:18 And then we have a number of other folks
01:20 in different levels of the company who've worked in that.
01:22 Our co-founders themselves, George Goldsmith,
01:25 Katerina Malievskaya,
01:27 they've stood back from day-to-day management.
01:29 They clearly had extensive knowledge
01:31 and networks across the space as they founded the company.
01:35 - Outstanding.
01:35 Now, Kabir, you've been with the company as CEO
01:37 for just over a year.
01:38 Can you share some of the highlights from this year?
01:41 What have been the major milestones
01:42 that you're most proud of?
01:44 - I think the key thing is when I came in,
01:46 we were still in the process of really designing
01:49 our phase 3 studies, our pivotal studies,
01:51 the last set of trials
01:54 before we can potentially file for approval.
01:56 A year later, not any of those designs well-established,
01:59 but we're now well into the phase 3 studies.
02:02 So those studies are ongoing, they're on track,
02:04 in line with our expectations.
02:07 I think the other key thing
02:08 that we have been focused on this year
02:10 is really building credibility
02:12 with a range of healthcare investors.
02:15 And we were able really to capitalize on that
02:17 in the last couple of weeks.
02:18 So just two weeks ago, we announced a private placement,
02:22 raising up to $285 million,
02:25 but one that's really joined
02:26 by some very leading healthcare investors.
02:28 So those two in particular,
02:30 but overall, I'm very happy with the progress
02:32 that the company has made during the last year.
02:34 - Wonderful.
02:35 Now, the big news, of course, right now
02:37 is your recent private placement.
02:38 Walk us through that deal
02:39 and what especially it means for Compass.
02:42 - So I think a couple of things are really important.
02:45 I think first, it gives us runway into late 2025,
02:49 as we have said.
02:50 So it extends our financial runway by another year,
02:53 which is really important
02:54 in the current market environment.
02:56 Secondly, the way it was structured
02:58 with an upfront of $125 million
03:01 and the potential for a further 160 million
03:03 is also, we think, a very creative way to finance us
03:06 and also gives us some security for the future.
03:10 But I think the other thing
03:10 is it really helps to validate the credibility of Compass.
03:14 You asked about the management team, about the leadership.
03:17 This really is a sign of confidence
03:18 in Compass overall, the leadership,
03:21 everyone at every level of the company.
03:23 We've seen, as I said,
03:25 some really significant healthcare investors,
03:27 very few of whom had really touched
03:29 this whole area of psychedelics so far,
03:32 have come in onto this round of financing.
03:34 So I think it's good for Compass.
03:36 And honestly, I think it's also good
03:37 for the sector as a whole.
03:39 - Excellent.
03:40 Now, a final question for you here,
03:42 as we start to wrap or as we get closer to wrapping,
03:44 attitudes towards psychedelics use is rapidly changing.
03:47 How do we ensure that they're used most effectively
03:49 and responsibly as a culture moving forward?
03:52 - That's a great question, Michael.
03:54 What we are focused on at Compass
03:56 is putting these through the medical model.
04:00 So that's why we're doing these extensive clinical trials.
04:03 If the trials are successful,
04:04 we will then apply for FDA approval.
04:07 And if approved, these will then be available
04:09 through the medical model,
04:10 and crucially, they can be reimbursed.
04:13 So we will be able to talk to CMS
04:15 and commercial payers in the US
04:17 about reimbursement because to us,
04:19 this is key to broad and equitable access.
04:22 And so for us, that's the medical model
04:24 that we're following.
04:25 And we believe that comes with the appropriate safeguards
04:28 around the use of these medicines.
04:30 - Terrific.
04:31 Kabir, what are you hoping to achieve
04:32 in your second year and beyond?
04:34 What do you think some of the greatest challenges
04:35 are that lie ahead?
04:36 And how do you plan to tackle them as you move forward?
04:39 - So the first priority is to continue to execute
04:41 on our phase three studies.
04:42 That's really important,
04:44 and we are very well set to do that.
04:46 The second would be to build on some of the work
04:48 we're already doing on the commercial side
04:51 or the potential for commercial.
04:52 And I was probably remiss not to include
04:54 one of the other key achievements of the last year,
04:57 which is that we obtained a CPT-3 code.
05:00 That's pretty technical,
05:02 but what that really allows is the tracking of the services
05:06 that are provided that are needed
05:08 for the support of psychedelic medicine.
05:10 So the services of the therapist,
05:11 the psychological support in the room.
05:14 And that's a really important signpost on the way
05:17 to developing more proof points around the commercial side.
05:19 So I think as well as advancing our phase three in TRD,
05:23 some of our other programs like anorexia, PTSD,
05:26 continuing to build a body of evidence
05:28 in other hard to treat serious mental illnesses,
05:31 continuing to make strong progress
05:33 on the side of building the commercial infrastructure
05:36 is gonna be really important as well.
05:38 - Without a doubt.
05:39 Kabir Nath, CEO of Compass Pathways.
05:41 Thank you so much for joining us here today,
05:42 sharing more about what you're doing as CEO of the company
05:45 and what's coming up next.
05:46 Looking forward to talking again soon.
05:48 - Thanks very much, Michael.
05:50 (upbeat music)
05:52 (upbeat music)
05:55 ♪ Hey ♪
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