In the early days of the psychedelics industry, financial reports mean very little. Unless a company wildly misses its operating spending budget and hemorrhages cash by more than expected, the report is basically a synopsis of a given company’s highlights and milestones over the previous quarter. But occasionally, a prescient nugget or two can be gleaned from the post-earnings conference call; a period of candidness by C-Suite which outlines operating philosophies that can drive long term company success. That moment came yesterday for atai Life Sciences N.V. (NASDAQ:ATAI) as the conversation moved into the lessons gleaned from Johnson & Johnson’s (NYSE:JNJ) disappointing experience with SPRAVATO, the esketamine drug touted at the time of approval as the first antidepressant medication shown to improve depressive symptoms upon first dose.
According to Pharmaceutical Technology, Spravato has struggled to gain market traction since its high price tag and abuse potential often outweigh the significantly added efficacy. Finding health providers who offer SPRAVATO and insurance companies willing to reimburse the high cost has been a problem, according to Dr. Mark Zimmerman, professor of psychiatry at Brown University. Furthermore, J&J has not released Spravato sales figures in its latest quarterly earnings—usually a telltale sign that sales aren’t going so well.
