Latest news with #psychedelic
Yahoo
19 hours ago
- Business
- Yahoo
This Psychedelic Drug Flopped on Trial Results. Should You Buy the Dip?
Psychedelic stocks are gaining attention as new ways to treat mental illnesses like depression and post-traumatic stress disorder (PTSD). Companies in the niche use substances like psilocybin to develop treatments that present alternatives to traditional pharmaceutical compounds. Investors are hopeful, but the road to approval is risky and drawn out. Compass Pathways (CMPS) just faced one of those setbacks when it ran a late‐stage (Phase 3) trial of its synthetic psilocybin drug (COMP360) in 258 adults with treatment-resistant depression. Those receiving the treatment had a 3.6-point greater reduction in symptoms versus those receiving the placebo, which met the trial's predefined goal of at least a 3-point difference, but came up short of the 5-point gap Wall Street had hoped for. As a result, shares plunged nearly 50% on Monday, June 23. Analysts: AMD Stock Will 'Close the Gap' With Nvidia by 2026. Should You Buy AMD Stock Here? The Saturday Spread: Data-Driven Trades That Cut Through the Noise (GILD, MCD, DJT) Why This Wildcard Stock Could Be a Future Star Get exclusive insights with the FREE Barchart Brief newsletter. Subscribe now for quick, incisive midday market analysis you won't find anywhere else. Despite the drop, analysts remain mostly bullish. The company has another major trial underway, with results expected next year. If that data is stronger, the stock could rebound sharply. Compass is also pushing ahead in studies for PTSD. For investors who believe in the future of mental health innovation, this dip might be an opportunity to get in at a better price. Based in London, Compass Pathways is a biotechnology company focused on developing innovative treatments for mental health conditions, primarily targeting psilocybin for treatment-resistant depression (TRD). Valued at $248 million in market cap, shares of this psychedelic drug company have plunged 54% over the past 52 weeks and are down 27% year to date, significantly underperforming the broader S&P 500 Index ($SPX). After the haircut, CMPS is more attractively valued with a price-book ratio of 1.31x, significantly cheaper than the sector median of 2.7x. This pricing suggests CMPS may offer a good entry point relative to its peers. While COMP360 met its goal in the COMP005 trial, the modest 3.6-point improvement disappointed markets, causing a sharp stock correction. Still, Compass Pathways is gearing up for a key catalyst in 2026, its 26-week readout from two Phase 3 trials testing its psilocybin-based treatment for treatment-resistant depression (TRD). While earlier data showed promising six- and twelve-week effects, investors remain cautious about long-term durability and patient variability. Some fear the treatment may be too niche or selective, especially with reports of adverse events in prior trials. Still, if the results are positive, Compass could gain serious momentum toward FDA approval. Compass Pathways appears to be on stable financial footing as it advances its clinical programs. In Q1 2025, the company reported $260.1 million in cash and cash equivalents. This capital base was secured through a combination of financing mechanisms, including a private investment in public equity (PIPE) deal, a loan agreement with Hercules Capital, and an established at-the-market (ATM) offering program. With a current quarterly cash burn of approximately $49.6 million, comprising $30.9 million in research and development expenses and $18.7 million in general and administrative costs, Compass projects that its existing cash reserves will support operations through the second half of 2026. This timeline aligns with the anticipated data release from its ongoing Phase 3 COMP006 trial. Wall Street analysts remain confident about the company's future growth prospects, as reflected in their consensus 'Strong Buy' rating. Among the 10 analysts covering the stock, eight rate it a 'Strong Buy,' one gives a 'Moderate Buy,' and one rates it a 'Hold.' The 12-month average price target is $16.40, implying upside potential of 483% from current levels. Compass Pathways is still a high-risk bet, with regulatory hurdles and clinical uncertainty ahead. But for investors who believe in the future of psychedelic medicine, this dip could be an attractive entry. While caution is warranted, the upside remains compelling for those with a long-term view. On the date of publication, Nauman Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Washington Post
3 days ago
- Politics
- Washington Post
Rick Perry: I'm dedicating my life to fighting for a psychedelic drug
Rick Perry is a former governor of Texas and U.S. secretary of energy. I've spent most of my adult life in public service — as governor of Texas, U.S. secretary of energy and a proud veteran. And few things have moved me like what I've witnessed with a psychedelic drug made from a shrub in Africa.
Bloomberg
7 days ago
- Business
- Bloomberg
Compass's Psychedelic Drug to Treat Depression Meets Goal in Trial
Compass Pathways Plc. said its psychedelic drug to treat a form of depression met its goal in a late-stage trial, but it may not be enough for investors. Compass announced some results from a study that evaluated 258 adults who received either a synthetic form of psilocybin or a placebo, using a scale to measure the change in their depression symptoms at six weeks.
Yahoo
19-06-2025
- Health
- Yahoo
This Illegal Psychedelic Is Hailed as a ‘Revolutionary Breakthrough'
As opioid addiction continues to devastate communities, a growing number of people are turning to ibogaine—an obscure and controversial psychedelic. WSJ visits a clinic in Mexico to follow one patient's journey through this intense and unorthodox treatment. Sign in to access your portfolio
New York Times
14-06-2025
- Health
- New York Times
Texas OK's $50 Million for Ibogaine Research
When Gov. Greg Abbott of Texas approved legislation this week to spend $50 million in state money researching ibogaine, a powerful psychedelic, he put the spotlight on a promising, still illegal drug that has shown promise in treating opioid addiction, traumatic brain injury and depression. Interest in ibogaine therapy has surged in recent years, driven in large part by veterans who have had to travel to other countries for the treatment. The measure, which passed the Texas Legislature with bipartisan support, seeks to leverage an additional $50 million in private investment to fund clinical trials that supporters hope will provide a pathway for ibogaine therapy to win approval from the Food and Drug Administration, a process that could take years. The legislation directs the state to work with Texas universities and hospitals and tries to ensure that the state retains a financial stake in any revenue from the drug's development. 'You can't put a price on a human life, but if this is successful and ibogaine becomes commercialized, it will help people all across the country and provide an incredible return on investment for the people of Texas,' said State Senator Tan Parker, a Republican who sponsored the bill. The initiative, one of the largest government investments in psychedelic medicine to date, is a watershed moment for a field that continues to gain mainstream acceptance. Regulated psilocybin clinics have opened in Oregon and Colorado, and ketamine has become widely available across the country as a treatment for depression and anxiety. Want all of The Times? Subscribe.
