UK-based COMPASS Pathways has secured $285 million in funding through a private placement to support its research in psychedelic medicines.
COMPASS has entered into a securities purchase agreement with a select group of healthcare specialist investors.
The transaction is being led by TCGX and Aisling Capital and new and existing institutional investors also participated, including Vivo Capital, RA Capital, Surveyor Capital, Paradigm BioCapital Advisors LP, Soleus Capital, Armistice Capital, Logos Capital, PFM Health Sciences and Laurion Capital Management, among others.
With clinical development programmes investigating COMP 360 – COMPASS Pathway’s proprietary stabilised, high-purity polymorphic crystalline synthesised formulation of psilocybin – for conditions such as post-traumatic stress disorder (PTSD) and treatment-resistant depression (TRD), the company is dedicated to accelerating patient access to evidence-based innovation in mental health.
The funding raised will go toward the company’s Phase 3 clinical programme in TRD, its commercial planning and preparation efforts, its on-going Phase 2 trials in anorexia nervosa and PTSD, as well as its development of digital technologies to complement and augment its therapies and its discovery and preclinical research.
Additionally, funding will support general and administrative expenses, working capital and other general corporate purposes.
COMPASS Pathways CEO, Kabir Nath, said: “We are grateful for the support of this group of leading healthcare investors for our work to bring potentially transformative treatment for mental health conditions to patients urgently in need of better options.
“We thank these investors for their confidence in our rigorous approach to building a strong base of evidence for the potential of COMP360 psilocybin treatment to help people with treatment-resistant depression (TRD), post-traumatic stress disorder and anorexia nervosa. We expect that the net proceeds will allow us to advance our pivotal phase 3 programme in TRD and achieve important milestones in the development of COMP360.
“We view this investment as a validation of the potential of psychedelic medicine and the importance of a rigorous and evidence-based approach.”
Under the agreement, COMPASS will receive approximately $125 million in gross proceeds before deducting placement agent commissions and offering expenses, and up to an additional approximately $160 million in gross proceeds if accompanying warrants are fully exercised for cash.
Morgan Stanley and TD Cowen are acting as the placement agents for the private placement.
