Field Trip Health Ltd. (TSX: FTRP; FTRP.WT; NASDAQ: FTRP)
("
Field Trip"), a leader in the
development and delivery of psychedelic therapies, reported its
second fiscal quarter 2022 results for the three months ended
September 30, 2021 and provided a business update. All results are
reported under International Financial Reporting Standards
("
IFRS") and in Canadian dollars, unless otherwise
specified.
Key Highlights and Recent Developments
During the quarter, Field Trip progressed its
strategy of building a leading psychedelic therapy company (Field
Trip Health) and continued to invest in its drug development
pipeline and program expansion (Field Trip Discovery).
Field Trip Discovery
FT-104
During the quarter, it was announced that the
lead indications for FT-104, Field Trip’s lead novel psychedelic
compound in development (patent pending), will be Treatment
Resistant Depression and Postpartum Depression. FT-104 is a novel,
synthetic 5HT2A receptor agonist compound. It is currently
advancing through preclinical studies with the in vivo portion
completed, and final results from safety pharmacology and GLP
toxicology are expected in calendar Q4 2021. To date, GLP
toxicology, cardiovascular, pulmonary, and neurological safety
pharmacology studies, as well as genotoxicity potential, all
continue to be encouraging. In addition, final manufacturing of
clinical trial material is scheduled for production to enable
FT-104 to move into Phase 1 clinical trials in the first half of
calendar 2022. The Company has experienced, and may continue to
experience, delays in initiating Phase 1 clinical trials due to the
ongoing COVID pandemic and delays at its contract manufacturing
organization.
FT-200 Group: Introducing Field Trip’s Second
Novel Psychedelic Program
The Company also announced the discovery of a
novel molecule that, based on in vivo assay details, has the
structure of classical psychedelics and has demonstrated improved
selectivity for the target serotonin 2A receptor (5HT2A) relative
to FT-104 and psilocybin versus off target serotonin, 5HT1A, 5HT2B
and 5HT2C receptors. This is meaningful because off-target 5HT2B
activity has been associated with increased risk of cardiovascular
toxicity. Based on this discovery, the Company is expanding the
scope of its development pipeline to focus on a new group of
molecules termed the FT-200 Group, (which includes the molecule
mentioned above), that have the structure of classical
psychedelics, with similar potency at the 5HT2A receptor as FT-104
and psilocybin, but with reduced or the absence of activity at the
off-target 5HT2B receptor. The aim of the work is that by reducing
or eliminating 5HT2B activity it may allow molecules like those in
the FT-200 Group to be administered more frequently, such as more
chronic or chronic intermittent administration or ‘microdosing’
strategies.
“The first molecule identified in the FT-200
Group demonstrates significant promise to maintain 5HT2A activity
while reducing off-target serotonin receptor activity. We are
continuing to conduct preclinical work on this molecule and will
explore structural analogs within the FT-200 Group to better refine
and optimize this new family of substances, understand their
properties better and work towards identifying a lead candidate”,
said Joseph del Moral, Field Trip’s Co-founder and CEO.
On October 29, 2021 the Company filed a
provisional patent application in the United States to protect the
composition, as well as potential formulations and uses of the
first molecule in the FT-200 group.
Field Trip Health Centres
Leveraging the growing awareness of Field Trip’s
psychedelic-assisted therapy clinics, Field Trip announced on
August 31, 2021 the launch of the KAP Co-operative Program (“KAP
Co-op”), a program that enables eligible independent psychedelic
therapists to provide ketamine-assisted psychotherapy (and, in the
future, other legal, psychedelic-assisted therapies) at its Field
Trip Health Centres. Field Trip also announced the launch of
training programs designed to provide interested psychotherapists
or other qualified mental health professionals and clinicians with
access to best-in-class training on KAP.
The Company continues to invest in its clinics
and during the quarter, entered into lease agreements for locations
in Dallas, TX, Miami, FL and Scottsdale, AZ. Subsequent to the
quarter end, the Company announced the opening of the Seattle, WA
clinic, its sixth in the United States and ninth overall, along
with the recent opening of a location in Fredericton, NB, and the
imminent opening of a location in Vancouver, BC.
Hannan Fleiman, Field Trip's Co-Founder and
President, said, “We continue to see strong growth in our clinic
business and our team is proud of the outcomes we are helping our
patients achieve. We have continued to make significant investments
in building out the leading platform for the delivery of
psychedelic therapies and to position our clinics to be at the
absolute forefront of our industry in establishing the critical
infrastructure for the current and emerging psychedelic therapies
with 9 clinics now in operation and 9 locations under construction
or about to commence construction. Importantly, the clinics enable
Field Trip to capture significant amounts of patient data on
clinical outcomes which we expect to help inform future clinical
development and treatment strategies.”
From a brand perspective, Field Trip continues
to be a globally recognized company in the industry. During the
quarter, the Company was featured in many top-tier print and
broadcast media outlets, including Forbes, Vox Media, Insider,
People and others, generating nearly 2 billion total potential
media impressions. Field Trip’s brand presence and reach continues
to generate strong website traffic and patient interest in the KAP
treatments offered by the Company.
NASDAQ Listing
On July 29, 2021, Field Trip’s Common Shares
commenced trading on the NASDAQ Global Select Market (“NASDAQ”)
under the ticker symbol “FTRP”, providing the Company with greater
access to capital. The Common Shares continue to trade in Canada on
the TSX under its current symbol FTRP. Concurrent with the NASDAQ
listing, Field Trip’s Common Shares ceased to be quoted on the
OTCQX. The Company previously completed the process to ensure its
shares are eligible for electronic clearing and settlement through
the Depository Trust Company (DTC). In addition, Ronan Levy and
Ellen Lubman joined the Compensation Committee and Mujeeb Jafferi
and Dr. Ryan Yermus resigned as directors of the Company. Mr.
Jafferi and Dr. Yermus continue to serve as Field Trip’s Chief
Operating Officer and Chief Clinical Officer, respectively.
Mr. del Moral, continued, “The milestone of
listing on NASDAQ during the quarter was testament to the rapid
progress we have made and increased our visibility in the
marketplace, improving trading liquidity and ultimately enhancing
long term shareholder value as we further strengthen our leadership
position in the psychedelic medicine industry.”
Strategic Review of Corporate
Structure
The Company has commenced a strategic review
designed to ensure that each operating unit is best positioned,
optimally resourced, and focused to provide maximum long-term value
to all stakeholders.
Mr. Joseph del Moral, said, “With the FT-104
nearing the clinic, the expansion of discovery efforts around our
FT-200 Group, and the growing number of opportunities for Field
Trip Health Centers we believe it is the correct time to review all
strategic options to ensure we continue to maximize the growth
potential and value of each business unit.”
The Company has engaged Bloom Burton Securities
Inc. as its financial advisor in connection with the strategic
review.
Financial Highlights
For the second fiscal quarter ended September
30, 2021, the Company earned patient services revenues of $907,816
from its Toronto, New York, Santa Monica, Chicago, Atlanta, Houston
and Amsterdam clinics, an increase of $813,284 or 860% over the
comparative quarter ended September 30, 2020 of $94,532 and an
increase of $40,416 or 5% over the prior fiscal first quarter. The
Amsterdam clinic began generating revenues in September 2021.
Second fiscal quarter 2021 patient services revenues were generated
from only two clinics, Toronto and New York. The modest quarter
over quarter revenue increase was in part due to the COVID-19 Delta
variant and seasonality associated with the slower summer months.
Revenues in the first part of the third quarter indicate a clear
upward trend as a result of recent process optimizations to
accelerate patient on-boarding and increase clinic capacity.
Net loss for the second fiscal quarter of
$13,019,280 was primarily due to total operating costs of
$15,638,596, of which $2,055,890 was related to non-cash
share-based compensation and $848,712 was related to non-cash
depreciation and amortization. This was partially offset by a
foreign exchange gain of $1,856,088. This compares with a net loss
of $3,932,444 in the second fiscal quarter of 2021. The increase
from the prior year primarily reflects the Company’s focus on
growing the business and continued investment in its drug
development pipeline and best-in-class clinic infrastructure. As
the Company continues to scale, it is optimizing and streamlining
the development of its psychedelic-assisted therapies.
Total operating costs in the second fiscal
quarter were $15,638,596 and were comprised of the following:
general and administration expenses of $8,917,717, research and
development expenses of $2,102,787, patient services expenses of
$1,917,451, sales and marketing expenses of $1,315,434,
depreciation and amortization of $848,712 and occupancy costs of
$536,495. This compares with total operating costs of $3,810,177 in
the second fiscal quarter of 2021.
The difference in general and administrative
expenses in the second fiscal quarter also included $596,055 in
non-recurring expenses primarily related to the NASDAQ uplisting,
$1,330,847 in recurring public company costs as well as non-cash
share-based payments of $1,380,398.
Balance Sheet
As of September 30, 2021 Field Trip had
unrestricted cash and cash equivalents, funds held in trust and
short-term investments of $87,526,034.
Selected Consolidated Financial
Information
The following table sets forth selected
financial information derived from the Company’s unaudited
condensed interim financial statements for the three months and six
months ended September 30, 2021 prepared in accordance with IAS 34
in a manner consistent with the Company’s annual audited financial
statements. The following information should be read in conjunction
with the financial statements and management’s discussion and
analysis, which are available on the Company’s website at
www.fieldtriphealth.com and under the Company’s SEDAR profile at
www.sedar.com.
FIELD TRIP HEALTH LTD
STATEMENTS OF LOSS AND COMPREHENSIVE
LOSS
|
3 months ended |
|
3 months ended |
|
6 months ended |
|
6 months ended |
|
|
September 30,2021 |
|
September 30,2020 |
|
September 30,2021 |
|
September 30,2020 |
|
|
$ |
|
$ |
|
$ |
|
$ |
|
Revenue |
|
|
|
|
Patient services |
907,816 |
|
94,532 |
|
1,775,216 |
|
118,131 |
|
|
907,816 |
|
94,532 |
|
1,775,216 |
|
118,131 |
|
Operating Expenses |
|
|
|
|
General and administration |
8,917,717 |
|
2,092,593 |
|
16,260,688 |
|
3,366,948 |
|
Occupancy costs |
536,495 |
|
111,877 |
|
913,110 |
|
175,660 |
|
Sales and marketing |
1,315,434 |
|
281,185 |
|
2,379,561 |
|
435,940 |
|
Research and development |
2,102,787 |
|
806,536 |
|
3,555,901 |
|
1,601,898 |
|
Depreciation and amortization |
848,712 |
|
269,578 |
|
1,464,195 |
|
479,338 |
|
Patient services |
1,917,451 |
|
248,408 |
|
3,375,272 |
|
321,665 |
|
Total Operating Expenses |
15,638,596 |
|
3,810,177 |
|
27,948,727 |
|
6,381,449 |
|
Other Income (Expenses) |
|
|
|
|
Interest income |
111,934 |
|
2,589 |
|
243,549 |
|
4,838 |
|
Interest expense |
(256,522 |
) |
(60,962 |
) |
(403,109 |
) |
(98,195 |
) |
Other income (expense) |
1,856,088 |
|
(158,426 |
) |
783,396 |
|
(534,673 |
) |
Net Loss |
(13,019,280 |
) |
(3,932,444 |
) |
(25,549,675 |
) |
(6,891,348 |
) |
|
|
|
|
|
Net Loss per Share - Basic and Diluted |
(0.23 |
) |
(0.16 |
) |
(0.44 |
) |
(0.28 |
) |
|
|
|
|
|
|
|
As atSeptember 30,2021$ |
As
atMarch 31,2021$ |
|
|
|
Cash and cash equivalents |
22,388,946 |
38,469,057 |
|
|
|
Funds held in trust |
- |
795,516 |
|
|
|
Restricted cash |
619,127 |
588,041 |
|
|
|
Short-term investments |
65,137,088 |
72,552,870 |
|
|
|
Accounts receivable |
2,464,223 |
813,761 |
|
|
|
Total Assets |
119,912,854 |
126,450,005 |
|
|
|
Total Non-Current Financial Liabilities |
18,102,184 |
6,426,484 |
|
|
|
|
|
|
|
|
|
Certain comparative figures have been
reclassified where necessary to conform with current period
presentation.
Conference Call
The Company will conduct a conference call and
webcast to discuss its results the following morning, Tuesday,
November 16 at 8:30 am ET. To access the call, please dial
1-877-407-9716 (within the U.S.) or 1-201-493-6779 (outside the
U.S.) and provide conference ID 13724604. A live webcast of the
conference call can be accessed via the Events and Presentations
section of the Field Trip Health Investor Relations website
here.
For those unable to attend the live call, a
telephonic replay will be available until 11:59 pm ET on Tuesday,
November 30, 2021. To access the replay of the call dial
1-844-512-2921 (within the U.S.) or 1-412-317-6671 (outside the
U.S.) and provide conference ID 13724604. An archived copy of the
webcast will be available on the Events and Presentations section
of the Field Trip Health Investor Relations website after the
conclusion of the call.
About Field Trip Health Ltd.
Field Trip is a global leader in the development
and delivery of psychedelic therapies. With our Field Trip
Discovery division leading the development of the next generation
of psychedelic molecules and conducting advanced research on
plant-based psychedelics and our Field Trip Health division
building centres for psychedelic therapies opening across North
America and Europe along with the digital and technological tools
that will enable massive scale, we help people in need with a
simple, evidence-based way to heal and heighten engagement with the
world.
Learn more
at https://www.meetfieldtrip.com, https://www.fieldtriphealth.com
and https://www.fieldtriphealth.nl.
Follow us on Twitter and Instagram:
@fieldtriphealth.
To receive company updates about Field Trip and
to be added to the email distribution list please sign up here.
Cautionary Note Regarding
Forward-Looking Information
This release includes forward-looking
information (within the meaning of Canadian securities laws and
within the meaning of the United States Private Securities
Litigation Reform Act of 1995) regarding Field Trip and its
business. Often but not always, forward-looking information can be
identified by the use of words such as "expect", "intends",
"anticipated", "believes" or variations (including negative
variations) of such words and phrases, or state that certain
actions, events or results "may", "could", "would" or "will" be
taken, occur or be achieved. Such statements are based on the
current expectations and views of future events of the management
of Field Trip and are based on assumptions and subject to risks and
uncertainties. Although the management of Field Trip believes that
the assumptions underlying these statements are reasonable, they
may prove to be incorrect. The forward-looking events and
circumstances discussed in this release may not occur and could
differ materially as a result of known and unknown risk factors and
uncertainties affecting the companies, including the timing,
completion and potential outcomes of the Strategic Review, the
funds available to Field Trip and the use of such funds, the
ability of Field Trip to operate its clinics, the construction and
commencement of construction of additional clinics, the
development, patentability and viability of FT-104 and the FT-200
Group, the ability of Field Trip to complete an investigational new
drug application and obtain regulatory approvals, as required,
prior to initiating clinical trials for FT-104 and molecules within
the FT-200 Group, the ability of Field Trip to meet eligibility
requirements for clinical testing and through to more complex
clinical trials, the ability of Field Trip to obtain regulatory
approvals prior to each clinical trial and the ability of Field
Trip to generate patient member growth, interest in the training
program, interest in the KAP Co-Op Program, uptake of the KAP Co-Op
Program by therapists and patients, the ability of management to
sustain and continue optimization of its clinical operations, the
timing and results of its research and development programs,
approval of phase 1 human trials, if any, the risk that future
clinical studies may not proceed as expected or may produce
unfavorable results, the opening of additional clinics, the
COVID-19 epidemic, the medical clinic industry, market conditions,
economic factors, management's ability to manage and to operate the
business and the equity markets generally. Although Field Trip has
attempted to identify important factors that could cause actual
actions, events or results to differ materially from those
described in forward-looking statements, there may be other factors
that cause actions, events or results to differ from those
anticipated, estimated or intended. Accordingly, readers should not
place undue reliance on any forward-looking statements or
information. No forward-looking statement can be guaranteed. Except
as required by applicable securities laws, forward-looking
statements speak only as of the date on which they are made and
Field Trip does not undertake any obligation to publicly update or
revise any forward-looking statement, whether as a result of new
information, future events, or otherwise. Additional information
relating to Field Trip, including its Annual Information Form, can
be located on the SEDAR website at www.sedar.com and on the EDGAR
section of the SEC’s website at www.sec.gov.
This press release does not constitute an offer
to sell or the solicitation of an offer to buy securities.
Neither the Toronto Stock Exchange, nor its
Regulation Services Provider, have approved the contents of this
release or accept responsibility for the adequacy or accuracy of
this release.
CONTACTS:
Media contacts:Rachel MoskowitzAutumn
Communications202-276-7881press@fieldtriphealth.com
Nick Opich / McKenna MillerKCSA Strategic
Communications212-896-1206 /
347-487-6197press@fieldtriphealth.com
Investor contacts:Kathleen Heaney / Tim
ReganKCSA Strategic CommunicationsfieldtripIR@kcsa.com
SOURCE Field Trip Health Ltd.
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