Wesana Health Holdings Inc. (CSE: WESA | OTCQB: WSNAF), a data-driven life sciences company focused on developing the novel therapies of tomorrow and delivering new care paradigms today, has today announced its second quarter 2022 financial results.
H1 2022 Highlights
- Received positive feedback from pre-Investigational New Drug (“IND”) meeting with U.S. Food and Drug Administration (“FDA”) on SANA-013
- Expanded the lead indication for SANA-013 to Major Depressive Disorder and exploring other complementary orphan indications
- Accelerating the clinical development of SANA-013 by initiating a Phase 1b/2a study in H1 2023, subject to the availability of capital
- Conducted pre-clinical studies supporting that psilocybin potentiates the impact of an anti-depressant
- Generated data from animal study in support of a novel depression treatment protocol combining psilocybin and cannabidiol
- Launched strategic review of Care Delivery Assets, including Wesana Clinics, Psytech Connect and Wesana Solutions
- Successfully reduced annual operating expenses by over $2.1M
Select Consolidated Financial Information
The following table sets forth selected financial information derived from the Company’s unaudited interim combined and consolidated financial statements and notes thereto for the three-months ended June 30, 2022. The following information should be read in conjunction with the financial statements and the accompanying management’s discussion and analysis (“MD&A”), which are available on the Company’s website at www.wesanahealth.com and under the Company’s SEDAR profile at www.sedar.com.
| For the three months ended ($USD) | Jun 30, 2022 | Dec 31, 2021 | Change |
| Cash Balance | 1,759,686 | 6,576,088 | (4,816,402) |
| Total Assets | 5,144,745 | 9,741,602 | (4,596,857) |
| Total Equity | 2,653,269 | 7,714,585 | (5,061,316) |
| Weighted Average Shares Outstanding | 33,898,028 | 23,152,729 | 10,745,299 |
| Fully Diluted Shares Outstanding (as converted*) | 43,774,491 | 41,387,743 | 2,386,748 |
*The number is presented assuming all of the Company’s outstanding Proportionate Subordinate Voting Shares and Super Voting Shares as at June 30, 2022 are converted into Subordinate Voting Shares in accordance with their terms and all of the Company’s other outstanding convertible, exchangeable and exercisable securities as at June 30, 2022 are converted, exchanged or exercised in accordance with their terms.
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Message to Shareholders
Wesana is continuing to make advancements with its strategy of streamlining operations to focus on areas that will contribute most to shareholder value. Despite a challenging macro environment for biotech companies we have made some significant advancements in our clinical program for SANA-013. Notably, the positive guidance received from the FDA prompted our team to expand our lead indication to Major Depressive Disorder, an indication that affects approximately 264 million people worldwide¹.
We have reached major milestones in our preclinical program including positive findings from animal studies in support of our IND application. Additionally, we have completed a novel animal study demonstrating that psilocybin has the ability to potentiate the effects of anti-depressant medications. Based upon feedback from the regulators, we have made the strategic decision to accelerate our clinical program for SANA-013 and to launch a phase 1b/2a human study in H1 2023, subject to the availability of capital.
I am incredibly proud of our team and efforts to bring SANA-013 to a clinical stage asset where it is ready to be administered in a human population for clinical work. The initiation of phase 1b/2a study will be a pivotal point for SANA-013 as we collect data that can support our lead indication of Major Depressive Disorder in addition to potential future indications for SANA-013 that can benefit patients. We remain convinced that our novel protocol, if and once approved by the FDA, has the ability to change the lives of millions of people suffering from depression.
In connection with our increased focus on the drug development program, we have taken steps to optimize our operating structure through a strategic reorganization and a reduction in the workforce. The restructuring program has reduced layers of management, removed duplicative roles and outsourced certain roles to drive cost efficiencies. The overall restructuring program has reduced annual corporate expenses by approximately $2.1M, excluding severance charges and associated costs. While it has been a difficult decision to part ways with a significant portion of our workforce, we believe that our new operating structure allows Wesana to be a stronger, more durable and focused company.
Lastly, to complete our transition to a simpler operating structure, we have launched a strategic review of our Care Delivery assets, including Wesana Clinics, Wesana Solutions and Psytech Connect.
While we continue to believe in the long term value of these assets and have been pleased with their development and growth, our team remains of the opinion that a streamlined strategy focused on drug development will yield the highest returns on shareholder value in the long term. Additionally, we believe that any future capital deployments, including of the proceeds raised from any sale of the Care Delivery assets, will best be invested into SANA-013.
We are encouraged by the level of interest received in the Care Delivery assets and, while there is currently no certainty as to the completion of a transaction, look forward to the prospect of consummating a sale or other transaction to realize value in respect of such assets.
While the broader capital markets remain difficult for emerging companies, we are working diligently to maximize the value of our current assets to our shareholder base. We believe that combination of the right assets, the right operating structure and the right people provide a strong foundation for Wesana’s future as we look to commence the first phase of SANA-013. Underpinning our current positioning are the multitude of successes our team has achieved in 2021 and the first half of 2022 that we intend to leverage for growth in the future.
Daniel Carcillo
Chief Executive Officer, Wesana Health Holdings Inc.
¹ World Health Organization, 2020
About Wesana Health
Wesana Health helps people transcend barriers in mental health and performance. We innovate in care development through our therapies and patent-pending protocols, and in care delivery through activating a new multidisciplinary, technology-supported clinical model. Learn more at www.wesanahealth.com.