MindMed stock turned lower in its Nasdaq listing debut on Tuesday, making it the latest psychedelic drug developer to use a major U.S. exchange as a pathway to raise money and bring new mental-illness and addiction treatments deeper into mainstream.
Shares of MindMed (MNMD) gave up gains to drop 11% to 4.17 in the stock market today. Tuesday’s listing means the stock now trades on the Nasdaq Capital Market and on the NEO Exchange in Canada.
MindMed stock will keep its listing on the Neo Exchange, where it trades in Canada. Shares surged 33% over the counter on Monday ahead of Tuesday’s listing.
CEO J.R. Rahn, in a statement last week, said the MindMed stock listing would “increase our visibility in the marketplace, improve liquidity, broaden and diversify our shareholder base, and ultimately enhance long-term shareholder value.”
MindMed is researching an array of projects — from LSD’s impact on anxiety and ADHD to a compound it calls 18-MC, a non-hallucinogenic synthetic derivative of ibogaine, that is in trials for addiction treatment. The company’s operations and research take place in the U.S., Netherlands, Switzerland and Australia.
Like many other psychedelic drug companies, none of MindMed’s major projects have generated revenue or profit. MindMed, in a March 30 filing, said it expects operating losses to continue and that it expects to incur “significant costs associated with its research and development initiatives.”
IBD Live: A New Tool For Daily Stock Market Analysis
Other Psychedelic Stocks
The proliferation of MindMed stock and other psychedelic stocks is similar to that of marijuana stocks in the U.S. and Canada. Many marijuana stocks rode a wave of initial hype that crashed as losses endured. However, anticipation has grown for more widespread legalization in the U.S.
Voters in Oregon in November voted to legalize the use of psilocybin in therapy. In 2019, Denver residents voted to decriminalize psilocybin mushrooms. The city council in Oakland, Calif., also voted in 2019 to decriminalize the substance.
But regulations on how therapy would work still need to be hammered out. Drug trials are still ongoing, and full approval by the FDA and other regulators across the globe isn’t guaranteed.
Along with MindMed stock, Atai Life Sciences, a company that backs a handful of psychedelic drug developers — and which is in turn backed by billionaire investor Peter Thiel — has filed for an IPO. The company would trade on the Nasdaq Global Market under the ticker symbol “ATAI.”
Compass Pathways (CMPS), which is developing a therapy that uses synthetic psilocybin, began trading in September on the Nasdaq Global Market.
Compass Pathways in March said it was granted two U.S. patents that cover oral formulations for that therapy, intended to treat severe forms of depression. Earlier last month, Compass said it was “on track” to report data from a Phase 2b trial of that therapy, COMP360, by the end of this year.
Compass Pathways stock was up 3% on Tuesday.
YOU MAY ALSO LIKE:
Psychedelic Drugs Eye Long Trip To Legalization But This U.S. IPO Won’t Wait
Here’s What Happens When You Mix Psychedelic Drugs With Psychotherapy
How Psychedelic Drugs Found In Nature Can Become Private Property
Find Winning Stocks With MarketSmith Pattern Recognition & Custom Screens
Employees At 2 Giant Companies Get Paid More Than The CEO