Atai Life Sciences (Nasdaq: ATAI) posted a $39 million net loss for the fourth quarter of 2024 but announced Monday that it boosted its financial position with a recent equity offering that extends its operational runway into 2027.

The clinical-stage company, which mainly focuses on developing psychedelic-based treatments for mental health conditions, reported that it raised $59.2 million in net proceeds from an equity offering completed last month. Atai said the cash infusion will carry its operations beyond anticipated readouts from two key Phase 2 clinical trials, which are expected in early 2026.

“We are beginning the year in a strong financial position, thanks to the recent capital raise, which extends our runway into 2027, beyond when we expect the topline data readouts from the Phase 2 clinical trials of our two core programs, VLS-01 and EMP-01, in Q1’26,” CEO and co-founder Srinivas Rao said in a statement.

The company reported a wider net loss of $39 million for the fourth quarter that ended Dec. 31, 2024, versus to $18.3 million in the same period the previous year. For the full year 2024, Atai posted a net loss of $149.3 million, versus $40.2 million in 2023, with the difference partly attributed to non-cash decreases in fair value of assets and liabilities.

As of Dec. 31, Atai had cash, cash equivalents, restricted cash and short-term securities of $72.3 million, down from $154.2 million at the end of 2023. The company said the decrease was primarily driven by $82.4 million in cash used for operations and $15 million invested in Beckley Psytech. It was partially offset by proceeds from the partial sale of its holdings in Compass Pathways.

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. The company also initiated a Phase 2 trial of EMP-01, an oral formulation of R-MDMA, for social anxiety disorder.

Both trials are anticipated to deliver topline results in the first quarter of 2026, according to the company.

“Our team is focused on executing these trials rigorously and efficiently to drive forward our mission to transform patient outcomes in mental health,” Rao added.

The company also noted that Beckley Psytech, in which Atai has a strategic investment, recently completed enrollment in its Phase 2b study of BPL-003, an intranasal mebufotenin benzoate treatment for treatment-resistant depression, with results expected by mid-2025.

Research and development expenses for 2024 decreased to $55.5 million from $62.2 million in 2023, though the company expects these costs to rise as its programs advance into later-stage clinical trials. General and administrative expenses also decreased to $47.5 million from $63.6 million, primarily due to reductions in personnel-related expenses.

Atai Life Sciences (NASDAQ: ATAI) announced after the markets closed on Wednesday that it priced a registered underwritten offering to raise approximately $55 million. Shares rose 14% to close at $2.55 on Wednesday. In a statement, Atai said the offering consists of 26,190,477 common shares priced at $2.10 per share. 

The psychedelic drug company said it plans to use the net proceeds from this offering for general corporate purposes, including working capital, and to advance the clinical development of its product candidates and programs. 

The offering is expected to close on Feb. 14. It also granted the underwriter a 30-day option to purchase an additional 3,928,571 common shares.

Executive moves

In January, Atai announced that Co-CEO Srinivas Rao was named the sole CEO. There were additional appointments with Kevin Craig, M.D., named as chief medical officer, Glenn Short advanced to to chief scientific officer, and Gerd Kochendoerfer appointed as chief operating officer.

“We have strengthened our leadership team at a pivotal time as we advance VLS-01 and EMP-01 into Phase 2 clinical trials,” Rao said. “As we continue to focus on executing our Phase 2 clinical trials, with VLS-01 now screening patients, we look forward to the Phase 2b data readout for Beckley Psytech’s BPL-003, anticipated midyear. This is a key milestone and an important step towards the potential of commercially scalable short-duration psychedelic therapies for people with treatment-resistant depression.”

To that end, the company recently announced positive topline results from the Beckley Psytech Phase 2a open-label study of BPL-003 in 12 patients with moderate to severe alcohol use disorder.

“The results showed that a single dose of BPL-003, in combination with relapse prevention cognitive behavioral therapy, induced meaningful and sustained reduction in alcohol use and heavy drinking days (HDDs) in patients with moderate to severe AUD out to 12 weeks,” the company said in a statement. “These findings add to the growing body of evidence supporting the potential of BPL-003 in treating serious mental health disorders.”

Balance sheet

Atai last reported earnings in November when Green Market Report wrote that the company reported a net loss of $26.3 million for the third quarter, down year-over-year from its net income of $43.3 million, but the clinical-stage biopharmaceutical company also noted at the time that it was well-positioned to bring multiple mental health drugs to market in the not-too-distant future.

At the end of September, Atai had $197.5 million in total assets, including $29.9 million in cash. The company noted in an investor presentation that it had enough cash to reach the milestones laid out through 2025.

New York-based Atai Life Sciences (Nasdaq: ATAI) reported a net loss of $26.3 million for the third quarter, down year-over-year from its net income of $43.3 million, but the clinical-stage biopharmaceutical company also noted it’s well-positioned to bring multiple mental health drugs to market in the not-too-distant future.

Atai said in a release that it’s made progress toward obtaining federal approval on several psychedelic drugs, including its versions of DMT, MDMA, ibogaine and two other drugs still in development. All of the drugs are projected to hit testing milestones this year or next year, Atai forecast.

The company noted in an investor presentation that it believes it has enough cash to reach the milestones laid out through 2025.

“We continue to see progress and momentum across our pipeline,” Dr. Srinivas Rao, co-chief executive officer and co-founder of Atai, said in a release. “Our team is focused on executing these trials with the utmost scientific rigor and is driven by our goal of being the leader in developing new psychedelic treatment options to mental health patients.”

Rao said that Atai’s version of DMT, formally dubbed VLS-01 and designed to treat depression, along with its version of DMT, called EMP-01 and designed for social anxiety disorder, are both slated to begin clinical trials before the end of 2024.

This year, Atai also expects data on clinical trials for its drugs that are still in development to treat alcohol use disorder and major depressive disorder. Next year, it’s expecting even more data on other trials.

Atai also has preclinical studies planned for its version of ibogaine, with a plan in the works to submit a new drug application to the federal government and eventual clinical trials with patients.

The company is also researching possible psychedelic applications from “novel, non-hallucinogenic 5-HT2AR agonists,” which it said could be key to further antidepressant treatments, and the potential use of RL-007, an “orally bioavailable compound,” for treating schizophrenia, with ongoing clinical studies and data from those expected next year.

On Sept. 30, Atai closed on the acquisition of IntelGenX Technologies Corp., in an all-debt/equity deal that required zero cash. Atai “agreed that its senior secured debt in IntelGenx was discharged in exchange for IGX shares,” which completed the acquisition following the sign-off from a Canadian court. IntelGenX manufactures DMT and other products related to psychedelic medicines.

At the end of September, Atai had $197.5 million in total assets, including $29.9 million in cash, against $52.2 million in total liabilities.