Compass Posts Wider Loss as Warrant Charge Swells
The company ended June with $433.3 million in cash, extending its funding runway into 2028.
COMPASS Pathways (CMPS), a biotechnology company, posted a wider second-quarter loss after a sharp increase in the fair-value charge tied to its warrant liability.
The quarter also marked a shift toward commercialization as spending on launch preparations outweighed lower research and development costs. Total operating expenses rose to $52.4 million from $42.9 million a year earlier.
The net loss widened to $253.8 million, or $1.88 a share, from $38.4 million, or $0.41 a share. The warrant-liability fair-value loss increased to $205.6 million from $2.5 million. For the first half, the net loss widened to $162.6 million from $56.3 million as warrant remeasurement swung to a $74.7 million loss from a $16.9 million gain.
Research and development expense declined to $29.2 million from $30.3 million as lower costs for COMP360 Phase 3 trials and discovery programs more than offset higher facilities, consulting, and contractor expenses. General and administrative expense rose to $23.2 million from $12.6 million, driven primarily by commercial-preparedness spending.
COMP360 advanced into a rolling new-drug-application submission and initial Food and Drug Administration review, with some modules submitted. Compass continues to target completion of the filing in the fourth quarter and a commercial launch in the first half of 2027.
Across two Phase 3 trials, 39% of COMP006 participants and 25% of COMP005 participants achieved at least a 25% reduction in depression scores at Week 6 and maintained the benefit on average through at least Week 26.
Cash and equivalents increased from $149.6 million at year-end, and the company's cash position should fund operations and capital spending beyond the planned launch. Compass moved to shareholders' equity of $84.5 million from a $52.8 million deficit, while shares outstanding rose to 135.7 million from 96.1 million and debt increased to $50.7 million.