Corrected: Compass Pathways Q3 net loss narrows on lower R&D charges

COMPASS Pathways

Tue 11:44

Corrects loss per share to $0.31, from $0.07, in table

Overview
UK biotech's Q3 operating income missed analyst expectations
Net loss narrowed significantly from prior year, mainly due to warrant fair value adjustments
Company ended Q3 with $444 mln cash, sufficient to fund operations into 2028

Outlook
Company expects to launch COMP360 in H1 2027, pending FDA approval
COMP360 may receive accelerated FDA review, potentially shortening approval to 1-2 months
Company expects current cash to fund operations and capital expenditures into 2028

Result Drivers
LOWER R&D COSTS - Co said reduced clinical trial and discovery program expenses drove lower research and development costs
COMMERCIAL PREPARATION - Co attributed higher selling, general and administrative expenses to investments in launch readiness for COMP360
WARRANT FAIR VALUE - Co said narrowing net loss was mainly due to non-cash fair value adjustments related to warrants

Company press release: ID:nBw1K8vzja

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Loss Per Share
 
$0.31
 
Q3 Net Loss
 
$9.83 mln
 
Q3 Operating Income
Miss
-$56.44 mln
-$54.57 mln (13 Analysts)
Q3 Operating Expenses
 
$56.44 mln
 
Q3 Pretax Loss
 
$10.94 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 18 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the biotechnology & medical research peer group is "buy"
Wall Street's median 12-month price target for Compass Pathways PLC is $20.00, about 137.8% above its November 2 closing price of $8.41

Reuters Recommended Reads
Nov 2 - Recursion Pharmaceuticals Q3 net loss narrows more than expected on lower costs
Nov 2 - Ireland's Jazz Pharmaceuticals Q3 revenue beats; 2026 outlook lifted
Nov 2 - Vertex Pharmaceuticals' Q3 revenue slightly beats estimates, outlook raised

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)