Compass Pathways Co-Founders Resign

Compass Pathways PLC (NASDAQ: CMPS) has announced significant changes to its board of directors, with co-founder and board chair George Goldsmith and fellow co-founder Ekaterina Malievskaia resigning their seats, effective March 29, 2024. David Norton, the lead independent director on the Compass board of directors, will step in as interim chair while the company conducts a global search for a permanent board chair.

George Goldsmith, in reflecting on the company's growth over the past eight years, expressed confidence in the company's positive trajectory under the leadership of Kabir Nath. Meanwhile, Ekaterina Malievskaia emphasized her conviction that the company is on the right track financially, in its programs, and in preparation for a potential commercial launch.

Under the leadership of George Goldsmith and Ekaterina Malievskaia, Compass Pathways achieved several key milestones, including the development of a mission-driven team committed to changing the patient experience of mental health care, obtaining breakthrough therapy designation from the US Food and Drug Administration, and conducting the largest study of psilocybin ever, the results of which were published in the New England Journal of Medicine.

David Norton, a former company group chairman of global pharmaceuticals for Johnson & Johnson, will assume the role of interim board chair. He has been a member of the Compass board of directors since 2018, serving as lead independent director.

Compass Pathways is known for pioneering the development of a new model of psilocybin treatment, with its proprietary formulation of synthetic psilocybin, comp360, being administered in conjunction with psychological support. The company has commenced a phase 3 clinical program of comp360 psilocybin treatment for treatment-resistant depression (TRD), following a successful phase 2b study showing statistically significant and clinically relevant improvement in depressive symptom severity for patients who received a single high dose of comp360 psilocybin with psychological support.

The market has reacted to these announcements by moving the company's shares -8.4% to a price of $8.7. Check out the company's full 8-K submission here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.