Atai posts $26M loss, but progresses on psychedelic clinical trials

New York-based Atai Life Sciences (Nasdaq: ATAI) reported a net loss of $26.3 million for the third quarter, down year-over-year from its net income of $43.3 million, but the clinical-stage biopharmaceutical company also noted it’s well-positioned to bring multiple mental health drugs to market in the not-too-distant future.

Atai said in a release that it’s made progress toward obtaining federal approval on several psychedelic drugs, including its versions of DMT, MDMA, ibogaine and two other drugs still in development. All of the drugs are projected to hit testing milestones this year or next year, Atai forecast.

The company noted in an investor presentation that it believes it has enough cash to reach the milestones laid out through 2025.

“We continue to see progress and momentum across our pipeline,” Dr. Srinivas Rao, co-chief executive officer and co-founder of Atai, said in a release. “Our team is focused on executing these trials with the utmost scientific rigor and is driven by our goal of being the leader in developing new psychedelic treatment options to mental health patients.”

Rao said that Atai’s version of DMT, formally dubbed VLS-01 and designed to treat depression, along with its version of DMT, called EMP-01 and designed for social anxiety disorder, are both slated to begin clinical trials before the end of 2024.

This year, Atai also expects data on clinical trials for its drugs that are still in development to treat alcohol use disorder and major depressive disorder. Next year, it’s expecting even more data on other trials.

Atai also has preclinical studies planned for its version of ibogaine, with a plan in the works to submit a new drug application to the federal government and eventual clinical trials with patients.

The company is also researching possible psychedelic applications from “novel, non-hallucinogenic 5-HT2AR agonists,” which it said could be key to further antidepressant treatments, and the potential use of RL-007, an “orally bioavailable compound,” for treating schizophrenia, with ongoing clinical studies and data from those expected next year.

On Sept. 30, Atai closed on the acquisition of IntelGenX Technologies Corp., in an all-debt/equity deal that required zero cash. Atai “agreed that its senior secured debt in IntelGenx was discharged in exchange for IGX shares,” which completed the acquisition following the sign-off from a Canadian court. IntelGenX manufactures DMT and other products related to psychedelic medicines.

At the end of September, Atai had $197.5 million in total assets, including $29.9 million in cash, against $52.2 million in total liabilities.