FSD Pharma Inc (NASDAQ:HUGE) (CSE:HUGE.CN) (FRA:0K9A) reckons it has sufficient cash to complete its Phase 2 clinical trial of lead candidate FSD-201 to treat coronavirus (COVID-19) patients, it told investors in its third-quarter results statement.
As reported previously, the biotech has received the green light from the FDA to initiate the study for ultra micronized-palmitoylethanolamide (FSD201) to treat 352 hospitalized patients with the virus.
READ: FSD Pharma wins FDA nod to begin Phase 2 clinical trial for its lead drug micro-PEA to treat coronavirus patients
As of September 30, the firm had cash and non-cash assets of C$56.2 million, while its short and long term liabilities were C$13.6 million.
Operating expenses for the quarter to end-September were C$17.4 million, up from C$11.1 million in the same period of 2019.
The increase was mainly due to research and development (R&D) costs of the Phase 1 safety and tolerability study of FSD201, the ongoing Phase 2 clinical study, higher stock-based compensation, and due to the Nasdaq listing in January this year, the company said.
The quarter saw FSD Pharma complete two financings for gross proceeds of US$19.5 million and in keeping with a company at this stage of development, the net loss was around C$18 million, compared to a loss of C$16.9 million in 3Q, 2019.
FSD Pharma has also struck a conditional contract to sell its non-core real estate asset in Cobourg, Ontario, which is expected to close before year-end, it said.
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