Atai Life Sciences, a biopharmaceutical company focused on developing mental health treatments, reported a net loss of $26.3 million for the third quarter. Despite the financial results, the company emphasized significant advancements in its pipeline of psychedelic drugs, with several clinical trials expected to yield results in the near future.
Clinical Trial Progress
Atai is actively pursuing federal approval for multiple psychedelic drugs, including formulations of DMT, MDMA, and ibogaine. According to the company, these drugs are projected to reach key testing milestones either this year or in 2025. Dr. Srinivas Rao, co-chief executive officer and co-founder of Atai, stated that the company is focused on executing these trials with scientific rigor, aiming to become a leader in developing new psychedelic treatment options for mental health patients.
Specifically, Atai's version of DMT, known as VLS-01, is designed to treat depression, while EMP-01, another DMT formulation, targets social anxiety disorder. Both are slated to begin clinical trials before the end of 2024. The company also anticipates data from clinical trials for drugs in development for alcohol use disorder and major depressive disorder this year, with further data expected next year.
Ibogaine and Novel Agonists
Atai is also planning preclinical studies for its version of ibogaine, with intentions to submit a new drug application to the federal government, followed by clinical trials. Furthermore, the company is researching potential psychedelic applications from novel, non-hallucinogenic 5-HT2AR agonists, which could be crucial for further antidepressant treatments. The potential use of RL-007, an orally bioavailable compound, for treating schizophrenia is also under investigation, with ongoing clinical studies and data expected next year.
Acquisition of IntelGenX
On September 30, Atai completed the acquisition of IntelGenX Technologies Corp. in an all-debt/equity deal. This acquisition enhances Atai's capabilities in manufacturing DMT and other products related to psychedelic medicines. As of the end of September, Atai reported total assets of $197.5 million, including $29.9 million in cash, against $52.2 million in total liabilities.
