Atai Life Sciences, Inc. (Nasdaq : ATAI), posted a net loss of $39,000,000 for the fourth quarter 2024. However, it announced on Monday that its recent equity offering has boosted its position and extended its operating runway to 2027.
This clinical-stage firm, which is primarily focused on the development of psychedelic treatments to treat mental disorders, announced that it had raised a net amount of $59.2 millions from an equity offer completed last month. Atai stated that the infusion of cash will allow it to continue its operations past two Phase 2 clinical trial results, expected early in 2026.
Srinivas Rao (CEO and co-founder) said, “We begin the year with a strong position financially, thanks to our recent capital raise. It extends our runway beyond Q1’26, when we anticipate the topline readouts of Phase 2 trials for our two main programs, VLS-01/EMP-01.
For the full year 2024, Atai posted a net loss of $149.3 millions, up from $40.2 million the previous years. Atai’s net loss in full-year 2024 was $149.3 millions, up from $40.2 million the previous year. This difference is primarily due to decreases non-cash in the fair values of assets and liability.
Atai’s cash, cash-equivalents, restricted funds, and short term securities were $72.3M at Dec. 31. This is down from 154.2M in 2023. According to the company, this decrease is primarily due to $82.4 million of cash invested into Beckley Psytech and $15 millions in operations. This was partly offset by the proceeds received from the sale of Compass Pathways’ partial holdings.
Despite the losses, Atai highlighted progress in its clinical pipeline, including dosing the first patient in its Phase 2 Elumina trial testing VLS-01, a buccal film formulation of DMT (dimethyltryptamine), for treatment-resistant depression. A Phase 2 study of EMP-01 (an oral formulation of RMDMA) for social anxiety was also launched by the company.
According to the company, both trials should deliver results by the first quarter 2026.
Rao continued, “Our team will execute these trials rigorously to advance our mission of transforming patient outcomes for mental health.”
Atai also announced that Beckley Psytech (in which Atai holds a strategic stake) recently finished enrollment for its Phase 2b trial of BPL003, a mebufotenin-benzoate intranasal treatment to treat treatment-resistant depression. Results are expected in mid-2025.
The company estimates that research and development costs will increase as the programs progress into clinical trials at later stages. General and administrative costs also fell to $47.5 from $63.6, due primarily to a reduction in staff-related expenses.