atai Life Sciences Reports Fourth Quarter and Full Year 2024 Financial Results and Recent Corporate Highlights

Rhea-AI Summary

atai Life Sciences (NASDAQ: ATAI) reported its Q4 and full year 2024 financial results, highlighting significant clinical progress and a strengthened financial position. The company completed an equity offering raising $59.2 million, extending its operational runway into 2027.

Key clinical developments include: dosing the first patient in Phase 2 Elumina trial of VLS-01 for treatment-resistant depression; initiating Phase 2 trial of EMP-01 for social anxiety disorder; and Beckley Psytech completing enrollment in Phase 2b study of BPL-003. Topline data for VLS-01 and EMP-01 are expected in Q1'26, while BPL-003 results are anticipated in mid-2025.

Financial highlights: Cash position of $72.3 million as of December 31, 2024, down from $154.2 million year-over-year. R&D expenses were $55.5 million for 2024, decreased from $62.2 million in 2023. G&A expenses reduced to $47.5 million from $63.6 million. Net loss increased to $149.3 million in 2024 compared to $40.2 million in 2023.

Positive

• Secured $59.2M equity offering extending runway into 2027
• Reduced R&D expenses by $6.7M year-over-year
• Decreased G&A expenses by $16.0M compared to previous year
• Positive initial data for BPL-003 in alcohol use disorder treatment
• Multiple advanced clinical trials progressing with clear timelines

Negative

• Net loss increased significantly to $149.3M from $40.2M year-over-year
• Cash position decreased by $81.9M to $72.3M from previous year
• R&D spend expected to increase with later stage clinical trials
• Non-cash decrease in fair value of assets of $48.9M

Insights

Oncology/Clinical Trials Expert

atai Life Sciences presents a robust clinical pipeline with significant progress across multiple psychedelic compounds for mental health indications. The company has reached critical milestones with first patient dosing in the Phase 2 Elumina trial of VLS-01 (DMT) for treatment-resistant depression and initiated a Phase 2 trial of EMP-01 (R-MDMA) for social anxiety disorder. Both trials have clear timelines with topline data expected in Q1'26.

Particularly noteworthy is their strategic investment in Beckley Psytech's BPL-003 program, which completed enrollment for its Phase 2b study in treatment-resistant depression with results expected mid-2025. The preliminary Phase 2a data in alcohol use disorder showed 50% of patients maintaining complete abstinence at three months following a single dose, suggesting significant therapeutic potential.

The company's approach of developing shorter-acting psychedelics (VLS-01 and BPL-003) designed to fit within a two-hour treatment window demonstrates strategic thinking about clinical adoption. This format could significantly improve healthcare delivery efficiency compared to longer-acting alternatives, potentially increasing both provider adoption and patient access if approved.

Financial Analyst

atai's financial position shows careful capital management amid clinical advancement. The $59.2 million equity offering completed in February 2025 extends their operational runway into 2027, strategically timed to cover multiple key clinical readouts. This runway extension is important as it removes near-term financing risk during a critical phase of clinical development.

The company reduced G&A expenses by $16.0 million year-over-year, demonstrating effective cost discipline. R&D expenses decreased by $6.7 million, reflecting the wind-down of certain programs while focusing resources on advancing priority candidates.

While the net loss increased to $149.3 million from $40.2 million year-over-year, this includes $48.9 million in non-cash decreases in fair value of assets. Cash position decreased to $72.3 million from $154.2 million, but with the recent capital raise, atai has built a financial bridge to potential value-creating clinical data in 2025-2026.

The company's disciplined investment strategy is evident in targeted spending on key programs while anticipating increased R&D expenses as trials advance. This balanced approach to clinical progression and financial sustainability positions atai well to navigate the typically challenging mid-stage clinical development period.

atai Life Sciences presents a compelling case of strategic advancement in psychedelic medicine for mental health. The company has successfully dosed its first patient in the Phase 2 Elumina trial of VLS-01 (buccal DMT) for treatment-resistant depression and initiated a Phase 2 trial of EMP-01 (R-MDMA) for social anxiety disorder, both with clear timelines for topline data in Q1'26.

The completed enrollment in Beckley Psytech's Phase 2b study of BPL-003 represents significant progress, with data expected mid-2025. Early results from BPL-003 in alcohol use disorder demonstrated 50% of patients maintaining complete abstinence at three months following a single dose, suggesting substantial therapeutic potential.

Financially, atai has strengthened its position with a $59.2 million equity offering that extends its runway into 2027, crucially covering the expected clinical readouts from core programs. The company demonstrated fiscal discipline by reducing G&A expenses by $16.0 million and R&D expenses by $6.7 million year-over-year.

While the net loss increased to $149.3 million (from $40.2 million in 2023), this includes $48.9 million in non-cash decreases in fair value of assets. The company's focus on developing psychedelics that fit within a two-hour treatment paradigm shows strategic thinking about real-world clinical adoption and healthcare delivery efficiency.

The extended financial runway paired with advancing clinical programs positions atai to potentially deliver multiple value-creating data readouts over the next 12-18 months without immediate financing pressure.

 - Dosed the first patient in the Phase 2 Elumina trial of VLS-01 (buccal film DMT) for patients with treatment-resistant depression; topline data anticipated in Q1’26

- Initiated a Phase 2 clinical trial of EMP-01 (oral R-MDMA) for patients with social anxiety disorder; topline data anticipated in Q1’26

- Beckley Psytech completed enrollment in the Phase 2b study of BPL-003 (intranasal mebufotenin benzoate) in patients with treatment-resistant depression; topline data anticipated in mid-25

- Completed an equity offering with net proceeds of $59.2 million; extending operational runway into 2027

NEW YORK and BERLIN, March 17, 2025 (GLOBE NEWSWIRE) -- atai Life Sciences (NASDAQ: ATAI) (“atai” or “Company”), a clinical-stage biopharmaceutical company on a mission to develop highly effective mental health treatments to transform patient outcomes, today announced fourth quarter and full year 2024 financial results and recent corporate highlights.

“We are beginning the year in a strong financial position, thanks to the recent capital raise, which extends our runway into 2027, beyond when we expect the topline data readouts from the Phase 2 clinical trials of our two core programs, VLS-01 and EMP-01, in Q1’26” stated Srinivas Rao, M.D., Ph.D., Chief Executive Officer and Co-founder of atai. “Our team is focused on executing these trials rigorously and efficiently to drive forward our mission to transform patient outcomes in mental health. We also look forward to several key milestones this year, notably Beckley Psytech’s BPL-003 Phase 2b topline results in patients with treatment-resistant depression as well as RL-007 in patients with cognitive impairment associated with schizophrenia, both expected mid-2025.”

Recent Clinical Highlights and Upcoming Milestones
VLS-01: N,N-dimethyltryptamine (DMT) for treatment-resistant depression (TRD)

• VLS-01 is an investigational proprietary oral transmucosal film formulation of DMT applied to the buccal surface, designed to fit within the established two-hour interventional psychiatry treatment paradigm.
• Dosed the first patient in Elumina, a Phase 2, multicenter, double-blind, randomized, placebo-controlled trial to assess the safety and efficacy of repeated doses of VLS-01 in patients with TRD.
• Topline data from the Phase 2 Elumina trial of VLS-01 are anticipated in the first quarter of 2026.
  

EMP-01: R-enantiomer of 3,4-methylenedioxy-methamphetamine (R-MDMA) for social anxiety disorder (SAD)

• EMP-01 is an oral formulation of R-MDMA that demonstrated a unique, dose-dependent subjective effect profile in a Phase 1 trial that was generally found to be more similar to classical psychedelics than to racemic MDMA.
• Initiated an exploratory Phase 2, randomized, double-blind, placebo-controlled clinical study to assess the safety, tolerability and efficacy of EMP-01 in adults with SAD.
• Topline data from the Phase 2 study of EMP-01 are anticipated in the first quarter of 2026.
  

BPL-003: 5-Methoxy N,N-dimethyltryptamine (mebufotenin) benzoate for TRD and alcohol use disorder (AUD) (strategic investment in Beckley Psytech)

• BPL-003 is an intranasal transmucosal formulation of mebufotenin benzoate designed to fit within the established two-hour interventional psychiatry treatment paradigm.
• In March 2025, Beckley Psytech completed patient enrollment in the eight-week, double-blind, core stage of the global Phase 2b clinical trial of BPL-003 in 196 patients with TRD. Topline results from the core phase of the study are expected in mid-2025.
• In January 2025, Beckley Psytech announced positive topline data from its open-label Phase 2a study of BPL-003 in 12 patients with moderate-to-severe AUD. Initial data demonstrated that a single dose of BPL-003, combined with relapse prevention therapy, produced meaningful and sustained reductions in alcohol use, with 50% of patients maintaining complete abstinence out to three months and was well-tolerated with no serious adverse events reported.
  

RL-007: Pro-cognitive neuromodulator for cognitive impairment associated with schizophrenia (CIAS) (strategic investment in Recognify Life Sciences)

• RL-007 is an orally bioavailable compound that has demonstrated pro-cognitive effects in multiple pre-clinical and clinical studies, including two Phase 1 and two Phase 2 trials.
• Recognify Life Sciences is running a Phase 2b proof-of-concept study in 234 patients living with CIAS. Topline results are expected in mid-2025.

Consolidated Financial Results
Cash, cash equivalents, and short-term securities: As of December 31, 2024, the Company had cash, cash equivalents, restricted cash and short-term securities of $72.3 million compared to $154.2 million as of December 31, 2023. The decrease of $81.9 million was primarily driven by $82.4 million net cash used in operating activities, $15.0 million for the Beckley Psytech investment, and $7.7 million of additional investments to advance our programs; partially offset by $16.1 million in proceeds from the partial sale of our ADS holdings in Compass Pathways, and $5.0 million in proceeds from our committed term loan with Hercules Capital, Inc. In February 2025, the Company completed an equity offering with net proceeds of $59.2 million and now expects its cash, short-term securities, and public equity holdings to be sufficient to fund operations into 2027.

Research and development (R&D) expenses: R&D expenses were $18.9 million and $55.5 million for the three and twelve months ended December 31, 2024, respectively, as compared to $14.2 million and $62.2 million for the comparable prior year periods. The year-over-year full-year decrease of $6.7 million was primarily attributable to a $5.5 million decrease in R&D personnel-related expenses and a $1.4 million decrease in program-specific expenses. The overall decrease in program-specific spend relates to the wind-down of certain programs, offset by the increase in on-going clinical trials and our non-hallucinogenic discovery program. The Company is anticipating R&D spend to increase as its R&D programs progress into later stage clinical trials.

General and administrative (G&A) expenses: G&A expenses for the three and twelve months ended December 31, 2024 were $11.3 million and $47.5 million, respectively, as compared to $19.4 million and $63.6 million for the comparable prior year periods. The year-over-year full-year decrease of $16.0 million was primarily attributable to a $16.2 million decrease in personnel-related expenses and professional services. The Company expects the reduction in G&A spend over prior years to continue.

Net income (loss): Net loss attributable to shareholders for the three and twelve months ended December 31, 2024 was $39.0 million and $149.3 million, respectively, as compared to $18.3 million and $40.2 million for the comparable prior year periods. Net loss attributable to shareholders for the twelve months ended December 31, 2024 includes $48.9 million of non-cash decrease in fair value of assets and liabilities, net and $25.5 million of non-cash share-based compensation. Net loss attributable to shareholders for the twelve months ended December 31, 2023 includes $86.6 million of non-cash increase in fair value of assets and liabilities, net, of which $69.0 million relates to a one-time accounting change, and $33.0 million of non-cash share-based compensation.

About atai Life Sciences
atai is a clinical-stage biopharmaceutical company on a mission to develop highly effective mental health treatments to transform patient outcomes. Our pipeline of psychedelic-based therapies includes VLS-01 (buccal film DMT) for treatment-resistant depression (TRD) and EMP-01 (oral R-MDMA) for social anxiety disorder, which are in Phase 2 clinical development. We are also advancing a drug discovery program to identify novel, non-hallucinogenic 5-HT2AR agonists for TRD. These programs aim to address the complex nature of mental health providing commercially scalable interventional psychology therapies that can integrate seamlessly into healthcare systems. For the latest updates and to learn more about our mission, visit www.atai.com or follow us on LinkedIn.

Forward-looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The words “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “anticipate,” “initiate,” “could,” “would,” “project,” “plan,” “potentially,” “preliminary,” “likely,” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these words. Forward-looking statements include express or implied statements relating to, among other things: our business strategy and plans; the potential, success, cost and timing of development of our product candidates, including the progress of preclinical and clinical trials and related milestones; expectations regarding our strategic investment in Beckley Psytech and other investments; expectations regarding our cash runway; and the plans and objectives of management for future operations, research and development and capital expenditures.

Forward-looking statements are neither promises nor guarantees, but involve known and unknown risks and uncertainties that could cause actual results to differ materially from those projected, including, without limitation, the important factors described in the section titled “Risk Factors” in our most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”), as such factors may be updated from time to time in atai's other filings with the SEC. atai disclaims any obligation or undertaking to update or revise any forward-looking statements contained in this press release, other than to the extent required by applicable law.

Contact Information
Investor Contact:
IR@atai.com

Media Contact:
PR@atai.com

-- Financial Statements Attached --

ATAI LIFE SCIENCES N.V.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except share and per share amounts)
		Three Months Ended								Twelve Months Ended
		December 31,								December 31,
			2024				2023				2024				2023
		(unaudited)
License revenue		$	(5	)		$	18			$	308			$	314
Operating expenses:
Research and development			18,942				14,156				55,455				62,203
General and administrative			11,318				19,423				47,544				63,582
Total operating expenses			30,260				33,579				102,999				125,785
Loss from operations			(30,265	)			(33,561	)			(102,691	)			(125,471	)
Other income (expense), net			(8,919	)			15,241				(45,714	)			86,185
Net loss before income taxes			(39,184	)			(18,320	)			(148,405	)			(39,286	)
Benefit from (provision for) income taxes			193				(428	)			356				(1,016	)
Losses from investments in equity method investees, net of tax			—				(394	)			(2,000	)			(3,593	)
Net loss			(38,991	)			(19,142	)			(150,049	)			(43,895	)
Net loss attributable to noncontrolling interests			(33	)			(850	)			(780	)			(3,671	)
Net loss attributable to ATAI Life Sciences N.V. stockholders		$	(38,958	)		$	(18,292	)		$	(149,269	)		$	(40,224	)
Net loss per share attributable to ATAI Life Sciences N.V. stockholders — basic and diluted		$	(0.24	)		$	(0.12	)		$	(0.93	)		$	(0.25	)
Weighted average common shares outstanding attributable to ATAI Life Sciences N.V. stockholders — basic and diluted			160,711,543				158,842,995				160,159,983				158,833,785

ATAI LIFE SCIENCES N.V.
CONDENSED CONSOLIDATED BALANCE SHEET
(Amounts in thousands)
		December 31,			December 31,
		2024			2023
Assets
Cash and cash equivalents		$	17,505		$	45,034
Securities carried at fair value			44,825			109,223
Short-term restricted cash for other investments			10,000			-
Committed investment funds			-			25,000
Prepaid expenses and other current assets			7,795			5,830
Short-term notes receivable - related party, net			-			505
Property and equipment, net			2,535			981
Operating lease right-of-use assets, net			1,334			1,223
Other investments held at fair value			28,887			89,825
Other investments			42,079			1,838
Intangible assets, net			3,246			1,772
Goodwill			331			-
Long-term notes receivable - related party, net			-			97
Convertible notes receivable - related party			-			11,202
Other assets			850			948
Total assets		$	159,387		$	293,478
Liabilities and Stockholders' Equity
Accounts payable		$	2,616		$	4,589
Accrued liabilities			9,847			15,256
Current portion of lease liabilities			477			275
Short-term convertible promissory notes and derivative liability - related party			1,150			-
Short-term convertible promissory notes and derivative liability			1,840			-
Current portion of long-term debt			6,374			-
Other current liabilities			2,647			-
Contingent consideration liability - related party			110			620
Contingent consideration liabilities			212			1,637
Noncurrent portion of lease liabilities			732			990
Convertible promissory notes and derivative liability - related party			-			164
Convertible promissory notes and derivative liability			-			2,666
Long-term debt, net			14,133			15,047
Other liabilities			2,695			7,918
Total stockholders' equity attributable to ATAI Life Sciences N.V. stockholders			116,297			242,962
Noncontrolling interests			257			1,354
Total liabilities and stockholders' equity		$	159,387		$	293,478

FAQ

What is the expected timeline for ATAI's major clinical trial results?

VLS-01 and EMP-01 topline data expected in Q1'26, while BPL-003 and RL-007 results anticipated in mid-2025.

How much did ATAI raise in their recent equity offering?

ATAI completed an equity offering with net proceeds of $59.2 million in February 2025.

What was ATAI's cash position at the end of 2024?

ATAI had $72.3 million in cash, cash equivalents, restricted cash and short-term securities as of December 31, 2024.

How did ATAI's R&D expenses change in 2024 compared to 2023?

R&D expenses decreased to $55.5 million in 2024 from $62.2 million in 2023, a reduction of $6.7 million.

What were the initial results of BPL-003 in alcohol use disorder trials?

50% of patients maintained complete abstinence for three months after a single dose, with no serious adverse events reported.