Wesana Health posts $2.7 million loss despite cuts
The psychedelic research society has shifted its focus to “mandatory deadlines” for developing treatments.
Wesana Health Holdings (CSE: WESA; OTCQB: WSNAF) managed to cut annual operating expenses by more than $2.1 million, but the psychedelic research and development company still posted a net loss of $2.7 million in the second quarter of 2022.
The company reported revenue of just $1,921 for the quarter. Wesana Health Holdings went public via a reverse takeover in May 2021, resulting in a lack of reported revenue in the second quarter of 2021.
The reduction in losses is a direct result of Wesana management’s decision to focus only on “mandatory milestones due to cash constraints” with respect to its ongoing research and development.
The company said it expects to continue to operate in the red in the near term due to spending on the drug development business segment. Wesana management has not provided any timetable for this to change.
Year-to-date revenue was $2,075, compared to $861 for the same period of 2021. Net loss increased slightly to $7.5 million.
After receiving positive feedback from its pre-investigation new drug meeting with the United States Food and Drug Administration, Wesana is seeking to accelerate the clinical development of SANA-013. The company plans to launch the next phase of clinical trials (Phase 1b/2a) in the first half of 2023, although this is subject to the availability of capital – which is somewhat questionable at this stage due to an environment difficult capital.
Wesana has also generated data from an animal study to support the treatment of depression using a combination of psilocybin and cannabidiol.
“As part of our increased focus on the drug development program, we have taken steps to optimize our operating structure through strategic reorganization and downsizing,” CEO Daniel Carcillo wrote in a message to shareholders.
“The restructuring program reduced layers of management, removed duplicate roles and outsourced some roles to generate cost savings.”
The company has also launched a “strategic review” of its care delivery assets as part of its refocused strategy.