Reunion Neuroscience (REUN) 16 Aug 222023 Q1 Earnings call transcript

Greetings, and welcome to Reunion Neuroscience Inc. Fiscal First Quarter 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. to conference like host, to now Ms. would turn over this your I KCSA. Heaney, Kathleen from ma'am, you, begin. Thank may you

Thank you, Reunion Laura. fiscal known XXXX Good Field morning, everyone, quarter as conference and earnings call Health for Trip Neuroscience formerly first Inc., Ltd. welcome to

has month. company today's reorganization, Field its on a separate discussion will & Wellness completed hold focus call Reunion; the As will Trip later this

now reorganization. CFO I'll both on the and presenting. Field update Reunion & CEO will the the of Directors & Field who the some to the management I any of a begin obligated uncertainties light and Safe a Board to Harbor, Risk the undertake in are forward-looking forward-looking making will Please role will during the Reunion; Joseph material. may statements results to Del that, Ronan, of stepped differ actual be Moral, call, outlined conference be as call, of Presenting and Any am are of may of Chairman also statements of management who that today expectations. revise continue should based an Reunion; note will presented as outlook to course and and Donna any serve we Trip Chairman number and are in today, results be call not considered obligation this Ronan disclosure Health into he and Before everyone of expectations to Trip Levy, these corporate Factors and that statements materially CEO does Wellness, member on forward-looking Wong, be remind cause factors. future. in the provide of the as of Wellness over is additionally, from These any current has risks of to section subject company's filings Health as hand

will the begin update presentation Thanks, Thank this with morning. Kathleen, will us on results. you business corporate financial will followed drug the discuss everyone. joining the reorganization. Donna, I quarter's my discovery and discuss who welcome Joseph an for by

then by Reunion for TSX Trip XX, will Field distinct separate directors. Last the questions. Wellness and your received begin to trade Wellness, June Wellness Thursday, and on & of court innovative June on & shareholder will and of been now In approval and the "REUN", was stock and companies and continue will continues symbol and leaders became and received Health The listed the Trip emerging its our developing other Health the both the approval. research We process, companies psychedelic call XX. development Trip a The for gross now the XX, on molecules will the renamed are Health and Oasis market long while providing companies to & Wellness company psychedelic-assisted we Trip the was delivering two both Neuroscience ahead. current open series split we we effective, spinout drugs. trade for remains right industry, Field on and shares final boards Management in in to moving of psychedelic-assisted we Field on under Venture known be million, formerly REXXX, & the the are timing will and & spinout such Field with therapies, future symbol, TSX focus the the Field of and is led Trip psychedelics will private Exchange both and Health novel NASDAQ Company Field as Reunion completed as with Neuroscience Wellness of and It's & the Reunion Wellness, on the connection arrangement, developing while expect financings individual trade under Reunion Trip and TSX-listed Health & listing ready organizations focus of Reunion. closing Field shareholders. Stock Exchange therapies. the psychedelic We Exchange, independently, interests August believe decision of FT-XXX, placement next-generation NASDAQ best Health teams "FTHW". to a management were and Trip the Inc. Health one $XX.X to Wellness as operate Reunion the divisions to approval proceeds granted has as that Venture and pleased On Toronto

a and for expect will the to an execute Joseph exciting in to We at on over update Health ourselves I call this Reunion's on as drug leader emerging this sufficient and discovery hand to strategy to position Wellness us be field. programs. Trip & provide our Field now

you, Ronan. Thank

continued psychoactivity depression under produced REXXX. levels, important The quarter, an exciting and the undertaken intensity, hitting In for Reunion of period Australia. with treatment first X with include our analyzed duration, safety, tolerability, effects in work the development first pharmacokinetics, the This serotonin of develop synthetic by receptors, innovative treatment-resistant known develop During to in our dosing a study a the XHTXA potentially aims dosage being and milestones. molecules of efficacy. as as step REXXX, to after announced of targeting FT-XXX, range to formerly REXXX. is being the durable postpartum measurements REXXX, Study and acute fast-acting dosings Phase Subjective we feelings pharmacodynamic successful examine, July, over in our some Clinical molecule the

XXXX. until are of to for for hydroxytryptamines, related results matter, manufacture study methods compounds planning expect exclusive we the methods XXXX, planned April, Phase from Prodrugs," composition calendar of granting of family on seek We formulations, to of XXXX, including report rights, "Tryptamine quarter in hemi-ester use, of Reunion year for granted studies and entitled, FDA REXXX the a guidance Isoprocin. claims are for of and a fourth In the to were X which patent

preclinical the strengthening Molecule while IP We FT-XXX, seeking are also and formally progress development. development for portfolio research Group, making our with also REXXX, known candidate lead the our as of optimal

patents a standalone proud made have in our as efforts the REXXX filed program financial potential development next pipeline. molecules. will advancing clinical company, by for and first entered we with Reunion protect discuss our USPTO novel being uses psychedelic team compositions, and family chapter results. our clinical on the provisional now have to I to patent-granted Donna singular the REXXX, a continue of have resources one formulations, and will I with call execute our trials of turn molecule. focus resulted which the of to the over the companies We two the our REXXX Entering the to have to the for am

everyone. good morning, Thank and you, Joseph,

all be corresponds are quarter XX, discussing dollar, to Canadian will and that period, the first As figures three-month in I XXXX. June fiscal the a ended reminder, of XXXX

financial of are our operations our Field from a Reunion continuing amount Net continuing quarter only. With Trip higher expenses results of to and from the $X.X of for after excluded operations a related from to million million, The single P&L, the primarily Operations. reflect from loss to $X.X an Health same $X.X general in & operations a Wellness, the corporate loss are to continuing On research Clinic from Operations, reorganization Reunion doubling and presented expenses. first by Clinic results tax or complete, in as the administration in primarily operating loss $X.X $X.X as public net was in more year. million, driven costs increase net the million million, costs compared reflects million $X net than period our from prior increase of company and the a loss development

million Trial and and development ramp Trip continued we to respect June the our of on to $X.X XX, Upon in the quarter, after we of Reunion investment costs, spinout at & had million, began had Health support and Phase Joseph, from to drug $XX heard REXXX equivalent, August X for in Reunion up $XX.X investments the Clinical X. on XX, Clinic. as financial $X.X we held Phase our cash our and short-term sufficient ongoing position, is XXXX, preparing cash, have just discovery Wellness, During closing you which approximately unrestricted With Field opening cash work. entered included million its million which believe transaction at

later As here. Field few will brief a Wellness, host in earnings month. Health & a call separate comments the make Trip I we'll

compared the the quarter, over ends period six reported by the million, exchange a compared the year. prior during million, of loss year. the operation This X% Field the to due with clinics costs with Operator quarter was rate prior quarter, and increase $X.X comparative the increase clinics period the in prior number to year, a Q&A $X.X & in decrease Health in of XXX% quarter I'll were the during $X.X the revenues offset revenue of of of a patient the and the our primarily net first an million This same in the earned ask the remarks. Wellness due for larger operation. Trip to more the now During open operating loss services prepared XX favorable in sequentially foreign same increased clinics quarter-over-quarter. lines of session. partially in There fiscal

question-and-answer [Operator Instructions] Our At this Partheniou time, session. the question from comes be will Andrew line we conducting Stifel. a with first of

proceed Your your with may questions.

these all on congrats milestones. and morning, good Hi,

Good Andrew. you, morning. Thank

little the a onetime Field costs Trip off quarter? any of & question, Wellness starting Reunion kind you Maybe for in housekeeping could Donna, Health or with outline

Health R&D impairment defer $X.X our quarter, related development and of result REXXX the notes, well recurring of respect construction Group. in to with in the for the as reflect primarily are it which were the The Field of previously million impairment we decision, the Trip $X.X transaction, financial had expenses much With assets announced, our our million an a $XX & which to million as spinout Wellness, related progress opening approximately million six our which our we on in results of Reunion to disclosed to clinics. $X fixed pretty costs associated for as REXXX operating nonrecurring, reflects

addition, $X expenses and amortization In expense. and related non-cash there depreciation approximately compensation share-based operating to million in was

here bit -- still for can what Reunion you explore to Appreciate about what filed that. in a two candidate? to series, select talk you and little you transitioning if final a molecules Wondering And you applications. as other found your moment, for patent maybe XXX you're looking the there

over Thanks, hand that Andrew. to We'll Nathan.

improved one like was is that put the antidepressant XB the has psilocybin in which something receptor selectivity also to XX-XX we but the in years hope of back demonstrate the [Ph], that. to serotonin for two evidence that's XA the or exploratory, that [since learning] initial the by the liability to XA the are effects were for having But FT-XXX, relative receptor cardiovascular receptor respond looking future -- we Good early we is what for that extremely our improve of say, one criteria, but responsible hallucinations and I'd molecules is, very the morning, which Andrew. and selectivity it's what now found And that targeting of the I'd say still families ago. XXXs,

what do including is at trying So, We've at of two improve to the compounds that actually are do has one family -- receptor got that, being multiple selectivity. very while XB antagonist we're that that examples XA. potent families the that and

that fleshing so So, ourselves. build out out we've we to multiple portfolio can a protect been patent structures

Before like we doing, much about ourselves that actually and filed get patents protect we're start to molecules describing first. the those we'd too

in going product, So, We're the assays, head on process. drug expanding the off-target induce around that's indication. assays pharmacology looking be see a beneficial I to assays -- the that multiple expanding behavioral where these at or assays standard might of be things put particular nature; the a understand the mean, twitch, might might us of serotonin little at best the aspects they that's drug plus of bit a there's that that a path behavioral candidates XA looking to a to liability whether more be much might for you helping if the pretty receptor, particular use toward looking benefit for that down

as clinics, acceleration this a bit could the they're you older that you see very could about clinics and kind talk the comfortable you're a that you're discussing, And extent to seeing clinics, And you bit the you for little talk how maybe about more performing much Thank environment? earlier, notably, that. little the any your mature? question current of ramp a did in on

to For Field that CEO we'll and & Ronan, go Trip Chairman over of Health Wellness.

we're clinics enquiries in curve we're up to seeing so overall, tend seeing clinics, smaller significant engagement, than at questions which we ramp an can What the a and before, as But impact -- New the measurably the Joe, rate faster that pace continue older of an of greater clinics. they than Andrew. hey, increase release and almost more client patient coming to clinics clinics is base the the the relatively increase a where in, those see York, and Toronto, number enquires Netflix, state. younger continues and normal move Your mature with How seek faster at so self-reinforcing, our grow a the the days and generating and leads L.A., the relative the is increased continue to base Mind, steady afterwards, on that to we're to and significantly Change weeks, of Thanks,

as be but bit interest. to increase an summer continues involved during the So, into to process The curve, month. interest converting the people move and seems demand goes seasonality to a that seems point certainly in there continues be slower that up, element of clients, little to of a up

of a So head we'll we fall, we as relative see acceleration back expect, the into revenues.

that. Thanks for I'll the back in get queue.

the from of Patrick comes H.C. Trucchio Wainwright. with line question next Our Instructions] [Operator

with may You proceed your question.

few and a follow-ups the all on Good getting have separation REXXX. and Thanks. completed. I on congrats morning progress

discuss First, psilocybin other specifically REXXX and would psychoactive differences? help anticipate what I'm Phase characterize if what could long-acting the the advantages you over short you from expect these substances, data X those to better to do just be you of would you wondering that and or potential

Patrick. Thanks,

it. Let's to go answer for to -- Nathan just on

all we're trying hope of that, know to demonstrate into by I would Patrick. Phase now, we advantages and Morning, the them, the most X.

duration in which -- I that hoping to full-day, of in the you that I for the say and once is a -- first the to three two me, like foremost chairs in the So having of order room the is short-acting, to and hours, short the gives the only think could of us people use something a possibility during out compared psilocybin excuse see We're something the experience. of psychoactive or having the half-a-day, and first day a clinic treatment.

We of with to molecule a the to fast-track initial the one we trials the patent-granted thing there as the capacity the the So, pushed We're, property. Joe companies hope doing in through first on have standard able a statements, clinical clinic. April. the was USPTO intellectual be to And molecule. in to out highlighted granted got in second we're actually be and our patent double

for going of partner that's to want exclusivity exclusivity want to with to be have they come able certain protect that XXXX. so, and/or really looking pharma to clear be patent, because to market able a And forward, market to to with And important, big they able out amount time. be have if exclusivity that this we

one of is us on. we X, the we're that But doses and range Phase explain what is trying doses. duration range In a that be And looking of are up, see single safe range so really that then that addition, doses study. This a starting Phase experience select low and help pharmacokinetics into for going experience. for the will to course, tolerable going can, to the ascending subjective that of of using we'll X for we're doses, a we're dose, doing of this at doses

the can all mEq to of of effects. measure measures tend intensity which and the to including of design the subjective doing, antidepressant the experience, that's So, correlate that we're

just following release there, that's initiated in And be then guidance press the helpful. Phase refers FDA. in to X studies Yes, from the to XXXX

Phase you can us I'm would of would planned what the us expect which of are the be how give the in indications? by you a need So, Phase regarding can tell answered but you wondering X X, key course, And X FDA to you Phase and you flavor many questions, the data what from presumably, studies need studies?

be the be Phase talking bit about questions It's might right now. early X to what a

would on CROs the with I protocol are protocol. working full advisory And right for synopsis is that have you work questions. That started we our study. X going our go with see mean the Web design site. around building we'll We to And study put that team can they us on share when protocol Phase the IND. in potential are we help a together the we that

how psychotherapy will how add bit design around we choose doses and questions what the dose, be but will dose formally They and might they the haven't of formulated strength, yet. we be be and it course, not those many add, So, much or study. about, how of will we around

may, they more that's expected last how X the program? protocol of are I reserved Phase one trials? part, of helpful. is -- the if become Yes, the digital And one to just part side, some X X aspect part would of be just they or then Phase that therapeutic for on Or, that includes or there the digital

back me It's to again.

Phase the we For X, using not are digital.

We with working not are patients.

we in are putting in if patients although they not somewhat were therapy, this, wish. -- treated of so, being now. our would doing in protective you say we patients And I as individually are chamber are right how They -- actually separate a rooms if cocoon

be be to sure So, full control that environment in and able the just keep we to are safe. them for them

right digital as the thinking X closer it than get with discuss about Advisory trials. rely Board we closer how this we our to not, clinical X. get digital decisions formal heavily that and our More we yet we Phase will aspect, would yet on about likely into something made think Phase FDA. first be But in I when when we the I any we we with be now haven't would interactions probably sure look start will talk than

Thank you very Great. much.

of Our line question Kulkarni with next the Canaccord. Sumant comes from

question. your with proceed may You

have subcutaneous actual to remind I us product for your in Good subcutaneously morning. you on that for the one trial? needs what of taking the you And question. you have different why that my formulation REXXX? doses administered the chose taken have volumes be just Thanks for - -- could chemical you are

be. or volumes less what be are now dose, the tell significantly than can't know anticipating to X up we you to we But the right until will ml. exactly I volume So the

quite and extremely that needle. like So, take we formulation don't this Almost painful, a be to a or for with very through very, for a fluid you small and not insulin. problem fine expect go might that is can a -- vaccine needle

-- of route in administration have Cmax is not gastric to the studies So, over is. in the problem. and not or much the duration did pharmacodynamics. one chair profile in which in trip the the that should the where chose psychoactivity can and That profile an where in person changes the we subcu and of obviously is of too of beholding much ability GI that the absorption, pharmacokinetics absorptions, to terms early variations be would is trip we the you can control means we rodents, from can time the reproducible to a perspective, from that a to be expect how better administration. And and We the order standardize of It the -- see reproduced clinic. than when end the clinic more is oral in trip,

can syringe often much that. going only a currently work we that might You happens in patient. expect sure we to treatment you a things like this don't through that oral nature. people able -- in as administered music be this when your administer doing right go the way taking dose we also aspect that, things be of home. be during dose the that And time the trip. other vomiting. And to flow and is up aspects be stays we is how administered, peek like proper is be That into route, the reduce with kinds orally to and vomited dose the the Administration dose to clinic. sure make the problem. are sure subcu it that with drugs drug, a going experience lead to to can is It music we not start happens this the can will because second and not in onboard, there at sometimes like that and patient so that back is a of delve the clinic-administered of a this And And

So, subcu. those of why primary we aspects are some the of chose

Got you. it. Thank

this of question-and-answer Ronan call end remarks. we gentlemen, Levy like back to I today's for reached the would session. over have and to Ladies Mr. turn closing

& seeing personal Goes support And psychedelic all call. you you, for with your the interest look novel excited I Wellness going of Thank to investors our are Field my forwards. leading saying, gratitude in Reunion well-placed and and Trip thank Operator. of be also for continue and call without Health progress Wellness extend for you as Wellness on want to Field analysts therapies. support. to this well-positioned ongoing delivery note about forward a both we Trip & Field the last earnings will I Reunion ongoing psychedelic-assisted Health the the Trip to and & developments earnings future Health Reunion to

develop new to is that opportunities passion disorders effective split company treatments the the strengthened Our presents. mental for only by

forward separate well we are term With current our the companies, the Operator build to to close for over lines. that, able confident Moving for as long as value as be ask both shareholders. will we I'll businesses future and

This today's concludes conference.

Enjoy You disconnect your for participation. rest your day. Thank the at you this lines your time. of may