Atai Q2 2022 Earnings Report
Key Takeaways
Atai Life Sciences reported a strong cash position of $312 million at the end of Q2 2022, further strengthened by a non-dilutive term loan facility of up to $175 million. The company has taken actions to extend its anticipated runway by one year into 2025 and anticipates realizing significant cost savings from a company-wide cost optimization.
Extended anticipated runway by one year into 2025 through securing non-dilutive debt facility and cost optimizations
Strengthened cash position with $312M cash on hand as of June 30, 2022, plus access to up to $175M non-dilutive financing
Completed clinical phase of PCN-101 drug-drug interaction (DDI) study
Database lock achieved for GRX-917 Phase 1 trial
Initiated VLS-01 Phase 1 trial
Atai
Atai
Forward Guidance
Atai anticipates all 8 compounds to be in clinical development by the end of this year and is focusing on R&D programs that it anticipates generating meaningful clinical data readouts over the next two years.
Positive Outlook
- PCN-101 Phase 2a read out in treatment-resistant depression (TRD) by end of year.
- RL-007 Phase 2b PoC study for CIAS expected to commence in H2 2022.
- Database lock of phase 1 SAD/MAD for GRX-917 achieved, and readout of results anticipated in H2 2022.
- GRX-917 PoC trial in healthy volunteers expected to initiate in H2 2022.
- KUR-101 Phase 1 results expected in H2 2022.
Challenges Ahead
- Clinical and preclinical development is uncertain, and our preclinical programs may experience delays or may never advance to clinical trials
- We will require substantial additional funding to achieve our business goals, and if we are unable to obtain this funding when needed and on acceptable terms, we could be forced to delay, limit or terminate our product development efforts
- We have never generated revenue and may never be profitable
- Third parties may claim that we are infringing, misappropriating or otherwise violating their intellectual property rights, the outcome of which would be uncertain and may prevent or delay our development and commercialization efforts
- A pandemic, epidemic, or outbreak of an infectious disease, such as the COVID-19 pandemic, may materially and adversely affect our business