Reunion Neuroscience Inc.

For the three and nine month periods ended December 31, 2022, general and administrative expenses were CAD4.6 million and CAD7.9 million, compared with CAD3.1 million and CAD9 million in the prior-year periods. Research and development was CAD3.4 million and CAD8.6 million, compared with CAD1.1 million and CAD4.7 million a year earlier. The company recognized CAD5.7 million and CAD15.3 million in charges related to lease guarantees and its investment in Field Trip Health & Wellness. Net loss from continuing operations was CAD12.5 million, or CAD1.07 per share, and CAD31.6 million, or CAD2.72 per share, compared with losses of CAD5.9 million, or CAD0.51 per share, and CAD11.8 million, or CAD1.02 per share in the prior-year periods. Cash and cash equivalents were CAD32.4 million at December 31, 2022, and management said near-term cash burn should be CAD4 million to CAD6 million per quarter, rising to about CAD7 million to CAD9 million per quarter once Phase 2 is underway later this year.

Greg Mayes framed the quarter around two priorities: advancing RE104 into Phase 2 and building a leadership team with drug-development experience. He emphasized that the Phase 1 dataset supports a recommended Phase 2 dose and highlighted the drug’s shorter psychedelic experience, which he said could matter to patients, physicians, and future payers. His tone was confident and forward-leaning, with repeated references to partner interest, patent protection, and a planned full data readout later in 2023.

Edward Smith focused on the financial base and expected burn. He said cash and cash equivalents were CAD32.4 million at December 31 and that runway extends through 2023, including limited start-up activities for the planned Phase 2 trial. He guided to quarterly burn of CAD4 million to CAD6 million in the near term, increasing to CAD7 million to CAD9 million per quarter once Phase 2 is fully underway, and noted a CAD5.3 million reserve for lease guarantees tied to the spin-out.

Analysts focused on cash burn, the FDA pre-IND process, dose escalation, and the evidence behind the “complete mystical experience” endpoint. Management said the FDA does not need the later dose cohorts to hold the pre-IND meeting, and that the company is comfortable moving forward based on the first four cohorts while still planning to share additional data later. They also said the Phase 2 PPD study is expected to enroll about 40 patients across 20 North American centers, and that the placebo comparator is intended to help preserve blinding.