By FSD Pharma on Friday, 13 November 2020
Category: Vertically Integrated

FSD Pharma believes it has sufficient cash to complete Phase 2 coronavirus trial

As reported previously, the biotech has received the green light from the FDA to initiate the study to treat 352 hospitalized patients

The group's operating expenses for the quarter to end-September were C$17.4 million, up from C$11.1 million in the same period of 2019

Inc () (CSE:HUGE.CN) (FRA:0K9A) reckons it has sufficient cash to complete its Phase 2 clinical trial of lead candidate FSD-201 to treat coronavirus (COVID-19) patients, it told investors in its third-quarter results statement. 

As reported previously, the biotech has received the green light from the FDA to initiate the study for ultra micronized-palmitoylethanolamide (FSD201) to treat 352 hospitalized patients with the virus.

READ: FSD Pharma wins FDA nod to begin Phase 2 clinical trial for its lead drug micro-PEA to treat coronavirus patients

As of September 30, the firm had cash and non-cash assets of C$56.2 million, while its short and long term liabilities were C$13.6 million.

Operating expenses for the quarter to end-September were C$17.4 million, up from C$11.1 million in the same period of 2019.

The increase was mainly due to research and development (R&D) costs of the Phase 1 safety and tolerability study of FSD201, the ongoing Phase 2 clinical study, higher stock-based compensation, and due to the Nasdaq listing in January this year, the company said.

The quarter saw complete two financings for gross proceeds of US$19.5 million and in keeping with a company at this stage of development, the net loss was around C$18 million, compared to a loss of C$16.9 million in 3Q, 2019.

FSD Pharma has also struck a conditional contract to sell its non-core real estate asset in Cobourg, Ontario, which is expected to close before year-end, it said.

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