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Psychedelics healthcare company Numinus Wellness (OTCQX:NUMIF) shared its unaudited, condensed and consolidated interim financial results for the three and six months ended February 29, 2024.
Q2 showed:
Revenues declined 15.4% in Q2 2024 vs. Q2 2023, reportedly due to the company’s further optimization of operations to focus on "profitability and seasonality effects."
Gross margin also sequentially declined 310 basis points in Q2 2024, to 33.0% from 36.1% in Q1 2024, reflecting the decrease in revenue compared to the prior quarter.
The company reports that, in the quarter, it continued its "cost-containment initiatives" to refocus support on revenue-producing activities and profitability (see below.)
In terms of operations, the period's highlights include a doubled enrollment in Numinus training programs from Q1 to Q2 (1,400+ learners vs. 700+); 15 clinical trials managed at its Cedar Clinical Research (CCR); and 17,661 client appointments provided in its clinics (average of 299.3 appointments per operating day.)
The Numinus model aims to help people heal and be well through developing and delivering innovative mental healthcare and access to safe, evidence-based psychedelic-assisted therapies (PAT) for depression, anxiety, trauma, pain and substance use.
Positioning itself as "an integrated mental healthcare provider," Numinus is building the needed infrastructure of clinical research support, practitioner training and patient therapy to serve the expected demand for PAT: with currently 90+ potential psychedelic drugs in the preclinical-to- final-clinical-development-stages, the FDA could eventually accept MDMA as a new drug application with a Prescription Drug User Fee Act (PDUFA) target action date of August 11, 2024.
In preparation for the above, Numinus launched two "critical" initiatives: one, cost containment; and two, strategic realignment. These involve:
In January 2024, the Numinus Board of Directors conducted a review process to "explore, review and evaluate a broad range of strategic alternatives" for the company to unlock shareholder value, with Stifel Canada as its sole financial and strategic advisor.
The review is officially complete, with Numinus deciding to explore opportunities to redefine, divest and/or discontinue its Canadian clinical operations.
The company will now focus on growth opportunities in the U.S. "while shifting to a resource-efficient, capital-light model" to continue supporting Canadian organizations, therapists and healthcare professionals in the field.
"This is consistent with our ongoing efforts to maximize shareholder returns based on our current financial and management resources," says management.
The company's U.S. operations reportedly generated 88% of its revenue in FY2023, with U.S. wellness clinics having "an optimized business model with full-time practitioners and near-term profitable EBITDA,” CEO Nyquvest detailed.
The Canadian reorganization includes a non-binding Letter of Intent (LOI) with the Canadian Centre for Psychedelic Healing (CCPH), which currently operates seven clinics across the country under the “Field Trip” brand.
Toward continuing to support healthcare providers and reinforce the company's commitment to advancing novel psychedelic-assisted therapies in Canada, a new pilot membership program under the Numinus Network initiative would allow therapists and healthcare professionals to retain access to the latest Numinus therapeutic protocols, including ketamine and psychedelic-assisted therapies.
The agreement has not been reached and the Canadian Reorganization has yet to take place.
Numinus has organized a Q2 2024 results conference call and webcast for April 15 at 5:30 p.m. ET, while the annual general meeting will be held on May 31.
Photo: Benzinga edit with images by Zita and canadastock on Shutterstock.
Posted In: NUMIF