Nov 2, 2020 Joseph Keller

Psychedelic Therapies Become New Biotech Hotspot Amid New Legitimacy

psychedelic therapies

For decades, psychedelic therapy was only an experimental idea under research by organizations at academic institutions including Johns Hopkins. This changed in 2018 after life sciences company COMPASS Pathways plc (NASDAQ:CMPS) received Breakthrough Therapy Designation from the FDA for its psilocybin-based treatment for treatment-resistant depression. Now in 2020, psychedelic therapy looks primed to become one of the hottest new developments in the healthcare sector. Following in COMPASS’s footsteps are pioneering companies like Mind Medicine (MindMed) Inc. (NEO: MMED) (OTCQB:MMEDF), New Wave Holdings (CSE:SPOR) (OTC:TRMNF), Revive Therapeutics (CSE:RVV) (OTC:RVVTF), and Johnson & Johnson (NYSE:JNJ), which are focused on developing psychedelics as medicines.

Biotech companies like MindMed are now stepping up to develop revolutionary new psychedelic therapies for mental health disorders like depression, PTSD, anxiety, and more, and these companies are receiving major funding from investors. As psychedelic therapy transitions from a theoretical solution to a breakthrough treatment, the potential of these treatments has become too great for federal regulators, and for investors, to ignore.

MindMed Takes Important Steps Forward With Psychedelic Therapy

Mind Medicine (MindMed) Inc. (NEO: MMED) (OTCQB:MMEDF) is one of the pioneering companies looking to bring psychedelic medications into doctors offices and pharmacies around the world. MindMed acquired a Phase 2 study of LSD assisted therapy that is happening in the birthplace of LSD, Switzerland. MindMed is also now preparing a Phase 2b FDA clinical trial using LSD assisted therapy for an anxiety disorder. An estimated 284 million people suffer from anxiety around the world, making it the most prevalent mental health disorder. It is also preparing a Phase 2 trial of a medicine derived from the psychedelic substance ibogaine, intended to address opioid addiction, which costs the US economy $500 billion per year.

On September 25, Forbes reported that MindMed had applied for an up-listing to the Nasdaq, a move that would put MindMed hot on the heels of COMPASS Pathways after COMPASS became the first psychedelic-focused life sciences company to have an IPO on the Nasdaq. MindMed recently closed a financing for CA$28.5M made up of institutional investors and led by Canadian investment bank Canaccord Genuity.

“Besides psychedelic medicines, there are very few transformative and new approaches to mental health,” MindMed Co-Founder, Director & Co-CEO JR Rahn told Forbes. “Institutional and Wall Street investors are recognizing that there needs to be novel approaches to these vast problems and if they are psychedelic medicines, so be it.”

Significant Steps Forward in the Psychedelics Industry

In April, COMPASS Pathways (NASDAQ:CMPS) received an $80 million round of funding led by PayPal co-founder Peter Thiel. This was the largest private financing round received by a psychedelic-focused life sciences company. As mentioned already, COMPASS also became the first psychedelics company to list on a major US exchange, with its IPO on the Nasdaq in September. After the IPO, COMPASS’s stock jumped 71 percent on its first day of trading.

On September 23, New Wave Holdings (CSE:SPOR) (OTC:TRMNF), an investment company focused primarily on the psychedelic sector, announced that it had closed a deal to acquire 25 percent of Toronto-based psilocybin company Anahit Therapeutics Ltd. New Wave Holdings acquired 12,791,667 common shares in the capital of New Wave at a price of $0.115 per share.

Psychedelic medicine company Revive Therapeutics (CSE:RVV) (OTC:RVVTF) announced on September 2 that the company had entered into a Clinical trial agreement with the Board of Regents of the University of Wisconsin System to evaluate psilocybin for the treatment of Methamphetamine addiction. In April, the company announced that it had closed a second Tranche of brokered private placement with Hampton Securities Limited for gross proceeds of $820,000.

In March 2019, Johnson & Johnson (NYSE:JNJ) received approval from the FDA for patents relating to Spravato, a form of ketamine used for treating drug-resistant depression. The drug is administered in the form of a nasal spray and has shown great promise for treating depression in cases where conventional medications have failed. In recent years, physicians have been using ketamine experimentally in such cases without FDA approval, so this is a big step for the industry.

Understanding of psychedelic therapies has come a long way in recent years from an idea to be studied to a revolution in the healthcare sector and a massive emerging market and biotech asset class. As this transition continues, companies like MindMed are leading the way.

For more information about MindMed, click here.

Featured image: DepositPhotos © SergeyNivens

Please See Disclaimer


STOCKS YOU MAY LIKE


Disclosure:

1) The author of the Article, or members of the author’s immediate household or family, do not own any securities of the companies set forth in this Article. The author determined which companies would be included in this article based on research and understanding of the sector.

2) The Article was issued on behalf of, and sponsored by Mind Medicine (MindMed) Inc. (“MindMed”). Market Jar Media Inc. expects to receive from MindMed’s Digital Marketing Agency of Record (Native Ads Inc.) thirty eight thousand six hundred US Dollars per month for a twelve month period.

3) Statements and opinions expressed are the opinions of the author and not Market Jar Media Inc., its directors or officers. The author is wholly responsible for the validity of the statements. The author was not paid by Market Jar Media Inc. for this Article. Market Jar Media Inc. was not paid by the author to publish or syndicate this Article. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. Market Jar Media Inc. requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Market Jar Media Inc. relies upon the authors to accurately provide this information and Market Jar Media Inc. has no means of verifying its accuracy.

4) The Article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of the information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Market Jar Media Inc.'s terms of use and full legal disclaimer as set forth here. This Article is not a solicitation for investment. Market Jar Media Inc. does not render general or specific investment advice and the information on Microsmallcap.com should not be considered a recommendation to buy or sell any security. Market Jar Media Inc. does not endorse or recommend the business, products, services or securities of any company mentioned on Microsmallcap.com.

5) Market Jar Media Inc. and its respective directors, officers and employees hold no shares for any company mentioned in the Article.

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.

8) This Article is not, and under no circumstances is it to be construed as, a prospectus or an advertisement and the communication of this release is not, and under no circumstances is it to be construed as, an offer to sell or an offer to purchase any securities of MindMed.­