Compass Pathways Restructures Workforce and Adjusts Timeline to Focus on COMP360 Phase 3 Program for Depression; Shares Fall 29%

Compass Pathways (NASDAQ: CMPS) has announced strategic layoffs and operational shifts amid delays in its key clinical program, COMP360, a psychedelic therapy for treatment-resistant depression (TRD). The company is restructuring to concentrate all resources on advancing COMP360, leading to a 30% workforce reduction, including cuts to senior management. The company now expects topline data from its COMP005 Phase 3 trial in Q2 2025, pushed back from the initial Q4 2024 timeline. Additionally, data from the COMP006 study will be postponed until the second half of 2026 to maintain data integrity.

Compass CEO, Kabir Nath commented, “Ensuring the success of our lead COMP360 program is our absolute priority. We remain confident that COMP360 can be an effective therapy for patients with serious mental illness and our focus on delivering new treatment options for patients living with treatment-resistant depression remains paramount. The shift in the phase 3 pivotal program timeline has forced us to look carefully at our operations and ensure that every resource is focused on this goal. As such, we have made the difficult decision to reduce our workforce and exit activities that are not directly tied to the completion of the trials, regulatory filing and commercialization if approved. These are necessary strategic decisions that we believe will position the COMP360 program for success.”

In its Q3 2024 financial report, Compass reported a net loss of $38.5 million, with research and development expenses rising to support the late-stage COMP360 trials. The company’s cash position, totaling $207 million as of September 30, 2024, is expected to fund operations through 2026, as Compass focuses its efforts on bringing COMP360 to market.