NEW YORK, Sept. 24, 2020 /PRNewswire/ -- 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.
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.
FN Media Group, LLC