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Psychedelic drugmaker MindMed stumbles in Nasdaq debut, CEO states

MindMed’s (MNMD) Nasdaq debut Tuesday made it the 2nd hallucinogen designer to be noted on a major U.S. stock exchange. UK-based Compass Pathways (CMPS) went public on the Nasdaq in September, while last week Peter Thiel-backed ATAI Life Sciences applied for an IPO.

Just a year earlier, New York-based MindMed was a penny stock on the over the counter market.

Shares fell 29% in their very first day of trading on the Nasdaq, but that seeks they added 65% Friday and 33% Monday on the OTCQB market in anticipation of the up-listing. The stock continues to trade on Canada’s NEO Exchange (MMED) and in Germany (MMQ).

” These are still extremely early innings for us,” MindMed’s co-founder and CEO JR Rahn told Yahoo Finance Live. “We’re not going to be dictated by the everyday changes or hour-by-hour fluctuations of our stock. We have 180,000 shareholders. A lot of them are extremely mission driven.”

Rahn said finishing to the Nasdaq is a major turning point not simply for his company, but for the market, signifying a rapid shift in investor interest for psychedelics to treat dependency and psychological health conditions such as stress and anxiety and depression.

” I think it’s a sign that the entire psychedelics market is maturing,” he stated. “We’re accessing an entire new fresh set of financiers that hasn’t had the ability to access us prior to. I believe that’s going to consist of sovereign wealth funds, pension funds and additional retail financiers.”

MindMed, whose prominent financiers include “Shark Tank’s” Kevin O’Leary and Bruce Linton, previous CEO of cannabis company Canopy Growth (CGC), is concentrated on enhancing psychological health with treatments that utilize active ingredients including MDMA, LSD, and psilocybin, also referred to as “magic mushrooms.”

” Our goal over the next couple of years is to perform scientific trials on psychedelic compounds like LSD, MDMA and others, and eventually bring those to market,” he stated. “To do that, you have to do it through the FDA pathway.”

The industry made fantastic strides in 2020 in eliminating barriers to legalization. In November, Oregon ended up being the very first state to legalize the medical usage of psilocybin, and numerous cities have legalized its usage including Denver, Ann Arbor, Mich., and Washington, D.C.

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In February, MindMed bought the digital medicine and therapeutics startup HealthMode for $32.5 million in cash and stock. The company uses artificial intelligence technology to accelerate drug advancement. It likewise tapped HealthMode’s founder and former Google AI expert Bradford Cross as its primary innovation officer.

” MindMed is as much an innovation business as we are a drug advancement company,” said Rahn. “Since eventually, psychedelic-assisted treatment, which requires therapists to administer, is going to need innovations that can assist find therapists and scale these services to mental health. So we’re going to be constructing that tech over the next couple of years.”

Day traders on the Reddit online forum, WallStreetBets, have actually been talking up MindMed, saying the stock is going “to the moon.” They said the exact same thing previously this year about the “meme” stock Gamestop (GME), which soared more than 2,000% in less than a month.

Rahn said he believes it’s “terrific” that the Reddit crowd is paying attention.

” This is just a natural protest from regular individuals that wish to see a change in psychological health, and unexpectedly, they can relate to something,” he stated. “I enjoy to have actually empowered and passionate shareholders. We’re really, really receptive and supportive. And you know, I think there’s been a great deal of hype around WallStreetBets, and meme stocks, and all of these things. But at the end of the day, individuals make markets. And it’s excellent to have the people behind us.”

Alexis Christoforous is an anchor at Yahoo Finance.

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