Numinus Wellness Aims for Post-Therapy Approval Success Amid Psychedelic Sector Challenges

LOS ANGELES– Despite a significant decline in its stock value since its peak in 2021, Numinus Wellness Inc. remains determined to navigate the challenges in the psychedelic space. The company’s management is strategically optimizing operations, targeting potential approval of MDMA-assisted therapy in 2024, and addressing cash burn concerns, rekindling investor interest.

During a recent earnings call, CEO Payton Nyquvest unveiled Numinus’s initiatives aimed at positioning the company for success after potential therapy approval. A pivotal part of the strategy is the Numinus Network licensing model, allowing mental health practitioners to utilize the company’s brand, protocols, and back-office infrastructure. This partnership model provides a cost-effective route for clinic expansion and maximizes existing investments in IT systems, marketing strategies, and insurance payer processes.

Numinus Network has already seen the opening of its inaugural partner clinic in Toronto, with plans for additional clinics in the coming weeks and months. Furthermore, Numinus is collaborating with Healing Commercial Real Estate to identify suitable clinic sites in regions with increasing demand for its services, complementing their partnership with the Multidisciplinary Association for Psychedelic Studies (MAPS) for experiential training in administering MDMA-assisted therapy.

By expanding its practitioner training programs through the collaboration with MAPS, Numinus aims to create a broader pathway for mental health providers to gain certification in psychedelic-assisted therapies.

To ensure financial discipline, the company renegotiated and terminated several vendor contracts and reduced its workforce by approximately 8% during the quarter, resulting in annual savings of approximately $4.2 million and extending the company’s financial runway.

With expectations of potential FDA approval for MDMA-assisted therapy in early to mid-2024, Numinus foresees significant growth opportunities, accelerating its path to profitability and positive cash flow through higher-margin services.

The recent third-quarter financial report revealed a 12.6% revenue increase, primarily driven by a rise in client appointments and stronger performance from Numinus’ clinical research business, Cedar Clinical Research. The company booked over 21,520 client appointments during the period, with new clients constituting 8.8% of the total appointments, in line with previous quarters.

CEO Payton Nyquvest expressed confidence in the MAPS collaboration as a substantial revenue-generating opportunity, emphasizing the demand for thousands of practitioners trained to meet the growing market needs.

Although the ketamine clinic space has faced challenges, Nyquvest believes Numinus’s model is robust and well-positioned for continued growth, with strong client outcomes. As the industry matures and best practices emerge, Numinus remains committed to thriving in the evolving psychedelic sector.