September 24, 2020 (MicroSmallCap via Comtex) — Last year may have been all about cannabis, but it’s clear that 2020 and beyond belongs to the psychedelic medicine market. Ever since Johnson & Johnson’s (NYSE:JNJ) ketamine-derived medicine, Spravato, received the first nod of approval from the US Food and Drug Administration (FDA) back in March 2019, the nascent industry has completely taken off. The FDA has since offered up Breakthrough Therapy Designation to COMP360, developed by Compass Pathways (NASDAQ:CMPS), which just IPO’d on the Nasdaq, while Revive Therapeutics (CSE:RVV) (OTC:RVVTF) is working on advancing psilocybin-based therapeutics for various diseases and disorders. Even Big Pharma giant AbbVie Inc. (NYSE:ABBV) made a move for the psychedelic drugs market through the acquisition of Allergan PLC and the rights to a novel psychedelic-based treatment for MDD. However, it seems that pure-play psychedelic med company Mind Medicine (MindMed) Inc. (NEO: MMED) (OTCQB:MMEDF) is a front-runner in the psychedelic market with its groundbreaking Phase 1 MDMA-LSD clinical trial and an application to uplist to the Nasdaq. Mind Medicine is also pursuing a Phase 2 study of LSD for the treatment of anxiety disorders in partnership with Dr. Matthias Liechti and Dr. Peter Gasser.
Mind Medicine is a neuro-pharmaceutical company that has initiated clinical studies to evaluate potential treatments to help patients with ADHD, anxiety, and substance abuse. Last month, the company announced its plan to launch the first-ever LSD-MDMA clinical trial in January 2021 to determine if the combination of drugs is safe for human use. Dr. Matthias Liechti, who is one of the world’s leaders in psychopharmacology research, will be conducting the double-blind, placebo-controlled Phase 1 study with 24 healthy volunteers in his lab at University Hospital Basel in Switzerland.
Mind Medicine also recently concluded dosing in a Phase 1 Single Ascending Dose (SAD) study of 18-MC, a non-hallucinogenic molecule based on the psychedelic substance ibogaine, and plans to begin the Phase 2a study of 18-MC in opioid addiction by the end of this year. Luckily, the company ended the second quarter with a strong cash position of $24 million to execute multiple clinical trials, which should help with its application for uplisting on the Nasdaq Capital Market. New York-based Mind Medicine appointed Canaccord Genuity as financial advisor to assess the viability of a potential uplisting to NASDAQ and evaluate M&A opportunities available to the company.
Investments into Psychedelic Medicine Market Continue to Soar
It may have been Johnson & Johnson (NYSE:JNJ) that kickstarted psychedelic medicines’ move into the mainstream with its ketamine-like drug treatment, but the market has grown exponentially since and regulators aren’t the only ones who are changing their perception of psychedelic medicine. Thanks to Johnson & Johnson’s Spravato, which was the first new depression treatment in decades, investors are finally beginning to see the potential benefits of psychedelics for combating mental illness. In fact, the psychedelic drug market is now projected to grow at a CAGR of 16.3% and reach $6.85 billion by 2027 due to the increasing prevalence of depression and mental disorders in the US.
Last September, a group of private investors put together $17 million to start the Center for Psychedelic and Consciousness Research at Johns Hopkins Medicine, creating the first psychedelic research center in the US and the largest research center of its kind on the planet.
Then in April, the sector experienced the largest-ever private financing round of $80 million for the newly listed Compass Pathways (NASDAQ:CMPS). The round included PayPal co-founder, Peter Thiel, a legendary Silicon Valley billionaire investor who was an early business partner of Elon Musk. On September 18, Compass entered the public markets with an initial public offering price of $17.00 per share and has since shot up to close at $38.39 last Tuesday.
Psychedelic medicine company Revive Therapeutics (CSE:RVV) (OTC:RVVTF) is engaged in advancing psilocybin-based therapeutics for various diseases and disorders and is prioritizing its development efforts to take advantage of regulatory FDA incentives like Fast Track, Orphan Drug, Breakthrough Therapy, and Rare Pediatric Disease designations.
Big Pharma giant AbbVie Inc. (NYSE:ABBV) entered the psychedelic medicine market when it gained the rights to a novel psychedelic-based treatment for MDD through the acquisition of Allergan. Although it’s unclear if AbbVie will relaunch research and development efforts for the ketamine-derived drug rapastinel after it failed to meet its primary endpoint in three acute pivotal studies, a separate study showed that the treatment could help combat opioid addiction, which is a common side effect of antidepressants. According to research by an undergraduate at Villanova University, rapastinel substantially reversed acute signs of opioid withdrawal in rats in three days.
In the meantime, Mind Medicine (MindMed) Inc. will continue to progress its novel psychedelic treatments and grow alongside the rapidly expanding market.
For more information on Mind Medicine (MindMed) Inc., click here.
Featured image: DepositPhotos © Melpomene
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6) The Article contains “forward-looking information” and “forward-looking statements” within the meanings of applicable securities laws, which may include, but is not limited to, statements with respect to anticipated business plans or strategies of MindMed, the anticipated date(s) of and results(s) of clinical trials that may be conducted by MindMed and/or its partners or affiliates, uses and viability of MindMed’s products, anticipated date(s) of and result(s) of obtaining legal status or approval of any of MindMed’s products, if at all, the ability of MindMed to use information relating to, or obtain patents or other intellectual property protection on, other data and clinical trials conducted by MindMed or its partners or affiliates, the future business, operations or capital of MindMed, and the future results and performance of the sectors and industries in which MindMed operates. Often, but not always, forward-looking statements can be identified by the use of words such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, or “believes” or variations (including negative variations) of such words and phrases, or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of MindMed to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Forward-looking statements contained herein are made as of the date of this press release and Market Jar Media Inc. and MindMed disclaim, other than as required by law, any obligation to update any forward-looking statements whether as a result of new information, results, future events, circumstances, or if estimates or opinions should change, or otherwise. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, the reader is cautioned not to place undue reliance on forward-looking statements.
7) Readers are urged to consult MindMed’s publicly-filed disclosure documents, available at its profile on www.sedar.com, including the risks described under the caption “Risk Factors” in MindMed’s management’s discussion and analysis for the period from May 30, 2019, date of incorporation, to December 31, 2019, dated March 30, 2020, which is available on MindMed’s website and the company’s profile at www.sedar.com.
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