Psychedelic Therapies Become New Biotech Hotspot Amid New Legitimacy

NEW YORK, Nov. 2, 2020 /PRNewswire/ -- 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) (OTCPK:TRMNF), Revive Therapeutics (CSE:RVV) (OTCPK: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.

Disclaimer: Microsmallcap.com (MSC) is the source of the Article and content set forth above. MSC owns and operates Stockstreetnews.com. References to any issuer other than the profiled issuer are intended solely to identify industry participants and do not constitute an endorsement of any issuer and do not constitute a comparison to the profiled issuer. FN Media Group (FNM) is a third-party publisher and news dissemination service provider, which disseminates electronic information through multiple online media channels. FNM is NOT affiliated with MSC or any company mentioned herein. The commentary, views and opinions expressed in this release by MSC are solely those of MSC and are not shared by and do not reflect in any manner the views or opinions of FNM. Readers of this Article and content agree that they cannot and will not seek to hold liable MSC and FNM for any investment decisions by their readers or subscribers. MSC and FNM and their respective affiliated companies are a news dissemination and financial marketing solutions provider and are NOT registered broker-dealers/analysts/investment advisers, hold no investment licenses and may NOT sell, offer to sell or offer to buy any security.

The Article and content related to the profiled company represent the personal and subjective views of the Author (MSC), and are subject to change at any time without notice. The information provided in the Article and the content has been obtained from sources which the Author believes to be reliable. However, the Author (MSC) has not independently verified or otherwise investigated all such information. None of the Author, MSC, FNM, or any of their respective affiliates, guarantee the accuracy or completeness of any such information. This Article and content are not, and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action; readers are strongly urged to speak with their own investment advisor and review all of the profiled issuer's filings made with the Securities and Exchange Commission before making any investment decisions and should understand the risks associated with an investment in the profiled issuer's securities, including, but not limited to, the complete loss of your investment. FNM was not compensated by any public company mentioned herein to disseminate this press release but was compensated twenty five hundred dollars by MSC, a non-affiliated third party to distribute this release on behalf of Mind Medicine Inc.

FNM HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE.

This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "may", "future", "plan" or "planned", "will" or "should", "expected," "anticipates", "draft", "eventually" or "projected". You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company's annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and MSC and FNM undertake no obligation to update such statements.

Media Contact:

FN Media Group, LLC
[email protected]  
+1(561)325-8757

SOURCE Microsmallcap.com

WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?

440k+
Newsrooms &
Influencers

9k+
Digital Media
Outlets

270k+
Journalists
Opted In

GET STARTED