Mind Medicine Inc shares received a Buy rating from Canaccord Genuity Capital Markets. This is based on a combination of factors including momentum, value, earnings revisions and quality.
If their current trials show that LSD microdoses are an effective ADHD medication, the drug could be a goldmine for the company. It may also reduce the need for people to take other medications like Adderall that have serious side effects.
1. Reduces anxiety
Mind Medicine (Nasdaq: MNMD; NEO: MMED), a neuro-pharmaceutical company developing novel product candidates to treat brain health disorders, today announced positive top-line results from a new study of its experimental drug candidate MM-120 in the treatment of anxiety disorders. The results were presented at London’s PSYCH Symposium.
The biotech company is advancing a pipeline of psychedelic-inspired drugs including psilocybin, LSD, MDMA, DMT and an ibogaine derivative, 18-MC. The company is focusing on the development of potential therapeutic treatments for mental illness, addiction and pain, which together account for an estimated $461 billion in annual healthcare costs.
This news release contains forward-looking information based on management’s current opinions and estimates of future events and performance. These statements include, but are not limited to, the anticipated development and commercialization of Mind Medicine’s drug development programs and a statement regarding the timing of completion of micro-dosing studies.
2. Reduces stress
Stress is an invisible but powerful force that can cause heart disease, strokes, headaches, depression, and many other problems. Fortunately, psilocybin, the active ingredient in MindMed’s two drug candidates, has been shown to reduce stress levels in mice and humans.
FCM believes that MindMed can drastically cut the development time of both MM-120 and MM-110 (18-MC) to have a marketable drug within four years, while cutting their cash burn by about fifty percent. This will be achieved by implementing strict corporate governance policies and changing the compensation plan for senior management to give them more incentivisation.
This news release contains forward-looking statements which involve risks and uncertainties. These statements are based on the current beliefs and judgments of management of MindMed at the date of this press release. These include, but are not limited to, expectations regarding the performance of the Company’s product candidates and trials, studies and programs.
3. Increases focus
Having a reasonably solid blend of drug development experience and commercial knowhow on board might seem like a good start, but when you consider that MindMed is attempting to develop drugs that neither the FDA nor the DEA class as medically useful it becomes clear that this is a company on a very challenging path. Getting to the point where we see some genuinely meaningful study data looks at least 12 months away if not more.
In the meantime, I think it’s worth keeping an eye on this stock because if it does get some substantial moves underway that help its shareholders it could do well. But it will take a lot of hard work to get there. That’s why I’m not putting my money on this stock just yet.
4. Increases creativity
Mindfulness meditation increases creative thinking and innovation. This is because it enables people to switch off their reactive fight-or-flight responses and engage in more thoughtful modes that are conducive to problem solving. Moreover, mindfulness mediation helps individuals learn to tolerate stress and regulate emotions. As a result, they develop the ability to bounce back from setbacks and maintain a positive outlook.
This press release contains forward-looking statements, including expectations relating to the development of MM-120 and MM-110 and the timing and completion of clinical trials for these drugs. These forward-looking statements are based on the current beliefs and assumptions of the management of Mind Medicine, Inc., and actual events or results may differ materially.
5. Reduces pain
While psychedelics must be administered with extreme care and under supervision, early studies indicate they can effectively alleviate pain — cancer, PTSD, fibromyalgia, etc.
For example, a single dose of LSD reduced cancer pain for weeks and repeated low-doses of lysergide (LSD’s chemical cousin) have shown promise for treating phantom limb pain in patients with chronic traumatic encephalopathy.
However, despite these promising preclinical results MindMed’s Board and Management team have misaligned with shareholders – the Company recently completed an unnecessary and highly dilutive September 2022 equity financing, raising less than $58 million (on a fully diluted basis). As a result, the company will likely run out of money by mid-2024 without any genuinely meaningful study data to share. FCM and the other nine initial investors in the Company represent a significant portion of the outstanding shares.