Relmada Therapeutics (RLMD) is focused on the development of REL-1017 as a novel treatment for major depressive disorder (MDD). The company's CEO, Dr. Sergio Traversa, highlighted the anticipated interim analysis for the Reliance 2 Phase 3 study, expected by the end of 2024, which will be a crucial event in determining the study's future direction.
Financial Overview
Relmada reported a decrease in cash and investments, which totaled $54.1 million as of September 30, 2024, compared to $96.3 million at the end of 2023. The company's net loss for the third quarter of 2024 was $21.7 million, slightly lower than the $22 million loss in the same quarter of the previous year. Research and development expenses increased to $11.1 million, reflecting ongoing investments in clinical programs.
REL-1017 Clinical Program
The clinical program for REL-1017 includes the Reliance II and Relight studies, both designed as double-blinded, placebo-controlled, randomized Phase 3 trials. The interim analysis for Reliance II will have three potential outcomes:
- Continuation of the study with the preplanned number of patients.
- Recommendation to continue with the addition of more patients, indicating a promising efficacy signal.
- Determination of futility, suggesting a clinically meaningful result is highly unlikely (drug-placebo delta below approximately 2.2 points).
Dr. Traversa emphasized that the interim analysis would serve as a significant de-risking event for the REL-1017 program. The company aims to provide a new adjunctive treatment option for the approximately 4 million people in the U.S. with MDD who require combination therapy.
Psilocybin Program Update
Relmada is also advancing its psilocybin-based program for metabolic disease. The Phase 1 safety study for REL-P11 is currently screening subjects, with the first randomization expected soon. This study, conducted in Canada with obese individuals, will define the pharmacokinetic safety and tolerability profile of REL-P11. A Phase 2a proof-of-concept study is planned for 2025.
Q&A Highlights
During the Q&A session, analysts inquired about the details of the interim release. Dr. Traversa indicated that the company would provide as many details as possible regarding the Data Management Committee's (DMC) recommendations. He clarified that the futility threshold is set at a drug-placebo delta of approximately 2 points on the relevant depression scale.
Regarding statistical considerations, Dr. Traversa confirmed that there would be no alpha penalty incurred from the interim analysis, as there are no plans for an early stop due to efficacy. The low dropout rate in the trials was noted, but cautioned against interpreting it as an indication of drug efficacy.
Financial Position and Outlook
Relmada's cash position is expected to support operations through key near-term milestones into 2025. While the company is currently operating at a loss, it remains focused on advancing its clinical programs and achieving regulatory milestones. The market capitalization stands at $98.97 million, with recent positive momentum potentially reflecting optimism about the REL-1017 Phase 3 study.
