• Research and Development Expenses: $10.2 million for the quarter ended September 30, 2024, compared to $3.9 million for the same period last year.
• General Administrative Expenses: $4.2 million for the quarter ended September 30, 2024, compared to $3.2 million for the same period last year.
• Net Loss: $13 million for the quarter ended September 30, 2024, compared to $6.6 million for the same period last year.
• Cash, Cash Equivalents, and Marketable Securities: $97.6 million as of September 30, 2024.

• Warning! GuruFocus has detected 2 Warning Signs with VTGN.

Release Date: November 07, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Vistagen Therapeutics Inc (NASDAQ:VTGN) is advancing a unique neuroscience pipeline with multiple clinical-stage product candidates in Phase 2 and Phase 3 development.
• The company has observed statistically significant efficacy and favorable safety data in its lead intranasal pherine development programs.
• Vistagen Therapeutics Inc (NASDAQ:VTGN) is targeting high-prevalence pharmaceutical markets with differentiated intranasal therapies.
• The company has initiated PALISADE-3 and PALISADE-4 Phase 3 trials on time, aiming for top-line results next year.
• Vistagen Therapeutics Inc (NASDAQ:VTGN) has a strong cash position with $97.6 million in cash, cash equivalents, and marketable securities as of September 30, 2024.

Negative Points

• Research and development expenses increased significantly to $10.2 million for the quarter, compared to $3.9 million the previous year.
• General administrative expenses also rose to $4.2 million from $3.2 million in the same period last year.
• The company reported a net loss of $13 million for the quarter, up from $6.6 million the previous year.
• There is no FDA-approved medication for the acute treatment of social anxiety disorder, indicating a challenging regulatory path ahead.
• The company is still in the process of completing nonclinical programs and CMC requirements for its PH80 program, delaying further Phase 2 development.

Q & A Highlights

Q: Can you provide an update on the pace of enrollment for the PALISADE studies and the expected timing for data release? A: Shawn Singh, CEO, stated that they are on track with the previously announced timelines, targeting mid-2025 for PALISADE-3 and the end of 2025 for PALISADE-4. There is significant excitement among investigators, with 16 sites activated for PALISADE-3 and 12 for PALISADE-4. The studies do not share trial sites, and there is strong engagement from the research community due to the novelty of the treatment for social anxiety disorder.

Q: What gives you confidence that the Phase 3 studies for fasedienol will be successful this time? A: Shawn Singh, CEO, highlighted that the current environment allows for more in-person interactions and training, which was not possible during the pandemic. The study design and endpoints are now familiar to the research community, reducing variability. Joshua Prince, COO, added that they have implemented rigorous training and monitoring to ensure protocol adherence.

Q: If PALISADE-3 does not meet its endpoints, will you still proceed with PALISADE-4? A: Shawn Singh, CEO, confirmed that both studies will be completed regardless of the outcome of PALISADE-3. The program is fully funded, and they are committed to executing both studies to support a potential NDA submission in early 2026.

Q: Are you still on track to submit the Phase 2B protocol for MDD by year-end? A: Shawn Singh, CEO, indicated that they are well advanced in the protocol development and expect to meet the year-end target, or it may slightly extend into January. The study will involve self-administration of the drug on an outpatient basis.

Q: What is gating the progress of the PH80 study for menopausal hot flashes, and what is the reason for the increase in headcount? A: Shawn Singh, CEO, explained that they are completing US IND enabling programs, including nonclinical and CMC studies, to support Phase 2 development in the US. The increase in headcount is primarily R&D-related, supporting expanded clinical work and ensuring consistent surveillance and training for the Phase 3 program.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.