Small Pharma's Q2 2024 Financial Highlights Ahead Of Cybin Merger For Global DMT Business

Small Pharma Inc. DMTTF, the short-acting psychedelics biotech about to be purchased by Cybin Inc. CYBN, published its interim financial results for Q2 ended August 31, 2023. 

Numbers showed:

• Cash of $5.6 (CA$7.68) million by August 31, vs. $13.5 million held by Feb. 28, 2023, a 58.6% six-month burn rate. And an almost 72% YoY decrease considering August 31, 2022’s $19.8 million held in cash.

• Six-month cash used in operating activities was $8.3 million vs. $8.98 million in the same comparable period in 2022.

• Total non-operating expenses of $4.4 million and $8.6 million for three and six months of 2023, vs. $5.4 million and $9.7 million for the same periods in 2022. 

• Of those, R&D expenses totaled $1.67 million and $3.49 million for the three and six month periods ended August 31, 2023; as compared to $1.99 million and $3.5 million used in the same periods in 2022.

• Net loss of $2.98 million and $7.1 million for the three and six months ended August 31, 2023; vs. $5.4 million and $9.7 million in the same comparable periods of 2022.

• Deficit totaled almost $47 million by Aug. 31, 2023; vs. $39.9 million by Feb. 28 in a 17% six-month increase.

Toward A Tight DMT Company

This August 28, Small Pharma and Cybin entered into a definitive arrangement for Cybin’s acquisition of all Small Pharma’s issued and outstanding securities in an all-share transaction. 

On October 12, shareholders of both companies voted in favor of the plan. On October 17, Small Pharma obtained a final approval order from the BC Supreme Court which, together with satisfaction or waiver of other closing conditions, would enable the arrangement to close on or about Oct. 23, 2023.

Small Pharma’s pipeline consists of short-duration psychedelic therapies targeting mental health conditions, most noticeably clinical-staged DMT-based assets SPL026 and SPL028.

CEO George Tziras says Small Pharma has made “exceptional progress” over the past eight years and that the team is thrilled to enter “the next stage of the company’s evolution” by combining its efforts and journey with Cybin.

The new combined company will be led by Cybin’s CEO Doug Drysdale,  while Tziras will join the board of directors. 

Some of Small Pharma’s senior management and staff will join the Cybin team toward executing the combined pipeline strategy, which points at building “an international clinical-stage leader” with two novel advanced and advancing psychedelic programs; and the industry’s “most advanced and well-protected” DMT program with the largest combined dataset of research on native and modified DMT compounds.

Specific data on progress of the combined company’s clinical programs and under-development is set to come following the arrangement’s completion.

Photo: Benzinga edit with photo by PublicDomainPictures and janjf93 on Pixabay.