Ekaterina Malievskaia, a significant shareholder of COMPASS Pathways plc (NASDAQ:CMPS), recently executed a private sale of ordinary shares. The transaction, which took place on October 24, 2024, involved the sale of 776,565 shares held directly by Malievskaia and an additional 776,565 shares held indirectly through her spouse, George Jay Goldsmith.
These shares were sold to Lars Wilde, a former co-founder of COMPASS Pathways, as part of a private agreement. The sale was executed under the terms of previously disclosed call option agreements, originally set in 2020 and amended over time, allowing Wilde the option to purchase these shares. Following the completion of this transaction, Malievskaia retains a direct ownership of 3,152,848 shares.
The sale did not involve any cash transaction as the shares were transferred for their nominal value, in accordance with the terms of the agreements. This transaction underscores ongoing changes in the ownership landscape at COMPASS Pathways, a company focused on innovative mental health treatments.
In other recent news, Compass Pathways has made substantial progress in its COMP360 Phase 3 clinical trials, focusing on psilocybin therapy for treatment-resistant depression (TRD). This advancement was reported during the company's Q2 2024 earnings call, where they also announced the appointment of Lori Englebert as Chief Commercial Officer and Gino Santini as the new Chairman of the Board of Directors. Compass Pathways used $34.4 million in operations during the quarter and confirmed a cash runway to fund operations into 2026.
TD Cowen has maintained a Buy rating on Compass Pathways, emphasizing the distinction between the company's Phase 3 trials and recent regulatory setbacks faced by Lykos Pharmaceuticals, a similar treatment provider. The analyst from TD Cowen stated that the issues leading to the FDA's Complete Response Letter for Lykos, including trial misconduct and missing safety data, are absent in Compass Pathways' research.
While Compass Pathways continues to explore the potential of psilocybin therapy for TRD, the firm is also examining its use for post-traumatic stress disorder (PTSD), with bipolar disorder being a lower priority. The company expects to release primary endpoint top line data by Q4 2024. These recent developments indicate a steady march towards potential new treatments in the mental health space.
InvestingPro Insights
As COMPASS Pathways undergoes changes in its ownership structure, it's crucial to examine the company's financial health and market position. According to InvestingPro data, COMPASS Pathways has a market capitalization of $439.74 million, reflecting its current valuation in the biotech sector.
An InvestingPro Tip highlights that COMPASS Pathways holds more cash than debt on its balance sheet, which could provide financial flexibility as the company continues its research and development efforts. This is particularly important given another InvestingPro Tip indicating that the company is quickly burning through cash, a common characteristic of biotech firms in the development stage.
The company's stock price movements are quite volatile, as noted by another InvestingPro Tip. This volatility is reflected in the company's price performance, with a 1-year price total return of 12.61% but a year-to-date decline of 26.51%. Investors should be aware that COMPASS Pathways is not currently profitable, with a negative EBITDA of -$141.31 million for the last twelve months as of Q2 2024.
For those interested in a deeper analysis, InvestingPro offers additional tips and metrics that could provide valuable insights into COMPASS Pathways' financial situation and market prospects. In fact, there are 5 more InvestingPro Tips available for COMPASS Pathways, which could be particularly useful for investors monitoring the company's progress in the competitive biotech landscape.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.