Mind Medicine (MindMed) Inc. (MNMD) on Q3 2022 Results - Earnings Call Transcript
Operator: Good day, and welcome to the Mind Medicine Third Quarter 2022 Financial Results and Corporate Update Conference Call. [Operator Instructions]. As a reminder, this conference call is being recorded. It is now my pleasure to introduce your host, Robert Barrow, Chief Executive Officer and Director at Mind Medicine. Mr. Barrow, you may begin your conference.
Robert Barrow: Thank you, operator, and good morning, everyone. Welcome to MindMed's Third Quarter 2022 Financial Results and Corporate Update Conference Call. Prior to market open today, we issued a press release with a summary of our results for the third quarter of 2022. The press release reporting our financial results is available in the Investors and Media section of MindMed's website and our quarterly report on Form 10-Q for the quarter ended September 30, 2022, is planned to be filed today with the Securities and Exchange Commission. Joining me today is Schond Greenway, our Chief Financial Officer; Dr. Dan Karlin, our Chief Medical Officer; and Dr. Miriam Wernli, our Executive President. During the course of today's call, I will provide an overview and update on our business. Then Schond will review financial results for the quarter ended September 30, 2022, followed by Q&A. Before we begin, let me remind you that during this conference call, we will be making forward-looking statements. Company's actual results may differ materially from those expressed in or indicated by such forward-looking statements. For a description of risks, please refer to our recent filings with the Securities and Exchange Commission. During the course of the third quarter, we continue to make significant progress across our business. Getting with MM-120 or LSD. In the third quarter, we dosed the first patient in our Phase IIb dose optimization study of MM-120 in the treatment of generalized anxiety disorder. Study enrollment has continued to progress according to plan, and we remain on target for a top line readout in late 2023. In September, results from the LSD ASSIST study, which is a Phase II placebo-controlled investigator-initiated clinical trial of LSD and the treatment of anxiety disorders was, conducted by our collaborators at University Hospital, was published in the peer review Scientific Journal Biological Psychiatry. Top line results in 46 patients with clinically significant anxiety demonstrated the significant rapid, durable and beneficial effects of LSD and its potential to mitigate symptoms of anxiety and depression. Enrollment in our Phase II proof-of-concept trial of low repeated administration of MM-120 in ADHD has also continued to progress and remains on track for a top line readout in late 2023. With respect to our MM-402, or R(-)-MDMA program, we continue to progress preclinical R&D efforts in preparation of the initiation of our Phase I clinical trial in 2023. Additionally, through our collaboration with University Hospital Basel, in the third quarter, we initiated a Phase I pharmacokinetic and pharmacodynamic investigator-initiated trial of RS and MDMA in healthy volunteers. This study seeks to assess 2 dose levels of R(-)-MDMA and 1 dose level each of and SDMA and, and we expect will provide valuable insights into the clinical activity of MM-402 as we progress our sponsor development program targeting core symptoms of autism spectrum disorder. Additionally, our external collaborations and early R&D activities have continued to progress, including the investigator-initiated study of LSD in the treatment of major depressive disorder being conducted at UHB. Our collaboration with lab at UHP continues to offer the opportunity to generate modern, high-quality data demonstrating LSD's clinical activity in brain health disorders. -- and continues to provide useful insights to inform the potential future direction in MM-120's development. We have continued the efforts disclosed in our second quarter earnings call to further streamline our operational and financial efficiency, and we continue to prioritize and focus our current development efforts and resources on MM-120 and psychiatric indications in MM-402. I would also like to take a moment to discuss our intellectual property position and strategy. As you are all aware, LSD and its form was discovered in the 1930s by Sandoz chemist, Hospital. Accordingly, IP is not available on our LSD free base. However, we believe we have made meaningful improvements in innovations on the original form of LSD and the development of our proprietary product candidate MM-120. This includes advancements both on the active pharmaceutical ingredient, LSD detartrate and dosage forms of LSD detartrate that we believe are optimized to meet modern pharmaceutical standards. In the third quarter of 2022, we converted several nonprovisional patent applications, which we believe could play a central role in the protection of MM-120. Should the claims and those applications be granted, their first X3 date will be in 2042. We continue to retain all rights to our intellectual property, clinical data and manufacturing rights that we have filed on our product candidates, and we'll continue to aggressively protect and expand our IP portfolio seeking to maximize the protection of our product candidates should they eventually be approved for marketing. I'll now turn to our platform of digital medicine products, which is strategically aligned with our drug development programs, and we believe has the potential to facilitate broad and diverse access to our product candidates. Under our MindMed Session Monitoring System, or MSMS platform, we have continued to advance our clinical studies and regulatory engagement in the pursuit of eventual approval for elements of MSMS as a software, as a medical device product. We look forward to providing further updates as we continue to progress our digital medicine strategy over the months ahead. We're incredibly pleased with the progress of our pipeline. And as we approach the end of 2022, we remain highly focused on the execution of our long-term plan and reaching key value-driving milestones, which are anticipated in the upcoming year. I will now turn the call over to Schond Greenway, our CFO, who will discuss our financial results.
Schond Greenway: Thanks, Rob, and thank you all for joining us today. We will now turn to our financial results for the third quarter ended September 30, 2022. As of September 30, 2022, cash and cash equivalents were $154.5 million compared to $133.5 million at December 31, 2021. During the quarter, the company regained compliance with NASDAQ listing requirements as well as completed financings through the use of our ATM facility and a public offering, which brought in an aggregate of approximately $60 million in gross proceeds. We believe these transactions not only brought in large life science institutional investors into the shareholder register, which displays their confidence in both our clear plan for value creation as well as our management team, but also enhanced and strengthened the financial position of the company away from the vagaries of the macroeconomic risks of the current equity markets. We believe that our cash and cash equivalents on hand positions us to accelerate and advance our proprietary pipeline into later stages of clinical development and will be sufficient to meet our operating requirements into the first half of 2025. Our net cash used in operating activities was $37.3 million for the 9 months ended September 30, 2022, compared to $38 million for the same period in 2021. Research and development expenses for the third quarter of 2022 were $7.8 million compared to $9 million for the third quarter of 2021. The decrease was primarily due to external costs related to MM-110 research program and a decrease in preclinical activities, which was offset by an increase in internal personnel costs as we continue to expand in-house research and development capabilities. General and administrative expenses were $9.2 million for the third quarter of 2022 compared to $8.2 million for the same period in 2021. The increase was primarily related to issuance costs related to the company's public offering, which closed during the quarter. The net loss for the third quarter of 2022 was $16.5 million compared to $17.2 million for the same period in 2021. Lastly, I wish to reiterate that we believe we are continuing to execute on a very efficient operation in terms of quarterly cash burn when compared to our largest peers in the space. As we have previously highlighted in our second quarter 2022 business update call, we intend to continue to conserve our cash, look for operational efficiencies, in particular our discretionary spending where we can, while also focusing and prioritizing our support to our most precious resource and development activities directed towards our key value drivers. I will now turn the call back to Rob, who will provide some closing comments.
Robert Barrow: Thank you, Schond. As we have demonstrated, the third quarter was marked by steady progress across our development pipeline. We have a highly talented and deeply committed team here at MindMed. We've continued to execute on our mission to be a leader in the advancement of novel treatments for brain health disorders. This concludes our prepared remarks, and I would now like to ask the operator to open the line for questions.
Operator: [Operator Instructions]. Our first question comes from Charles Duncan from Cantor Fitzgerald.
Operator: And our next question comes from François Brisebois from Oppenheimer.
Operator: Our next question comes from Elemer Piros from ROTH Capital Partners.
Operator: And our next question comes from Patrick Trucchio from H.C. Wainwright.
Operator: Our next question comes from Sepehr Monochehry from Eight Capital.
Operator: This concludes the question-and-answer portion of the call. I'll now turn the call back over the MindMed's CEO, Robert Barrow, for closing remarks. Rob?
Robert Barrow: Yes, thank you, operator, and really thank you everyone who joined us today and to all for the great questions. I'd also like to thank entire team, as we have a highly talented and dedicated team here at MindMed, and we're very grateful for their incredible efforts to advance our research and development programs. We thank our investors and all the people who have been supportive to MindMed along the way and continued to be supportive as on our strategy to provide meaningful impact in the development of navel treatment for brain health disorders. And I also want to thank the investigators and participants and their families. This is a -- we're doing research in populations that have significant impact, which is a massive unmet medical need, and we believe we can have a meaningful impact in this populations, and it can't be done without the dedicated researchers and the patients who volunteer their time and go through all of the extensive work in the clinical trial to conduct these studies. So a very direct thank you to all of them. We're very excited to continue our study, and we're very excited to the. So thank you all for being here today, and we look forward to running further updates soon.
Operator: This concludes today's conference call. Thank you for attending.
