Mind Medicine Stock Is Soaring After Its NASDAQ Debut. What's Next?

By The Motley Fool11 days ago

In a long-awaited move, psychedelic therapy developer Mind Medicine (or MindMed) (NASDAQ: MNMD) was registered on the NASDAQ on Tuesday of last week, causing its stock to explode by more than 50% compared to its level earlier in the month. While the price has settled from its recent heights, investors -- myself included -- are doubtless pleased. What's more, retail traders from Reddit and Robinhood are also showing strong interest in the stock, which could drive it even further.

With the state of the company's current set of projects and its roughly $161 million in cash, investors can look forward to other major catalysts stemming from MindMed's new technology division and its progress in clinical trials over the next year without worrying about dilution from fundraising. So what might those catalysts be, and when might they happen?

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MNMD data by YCharts

Progress in the clinic will drive future growth

Perhaps the most important catalysts for shareholders are the company's three headliner pipeline projects in phase 2 trials. Two of these projects seek to treat conditions like attention deficit hyperactivity disorder (ADHD) and anxiety using LSD, whereas the third is an investigational treatment for addiction using a compound containing ibogaine, a naturally occurring psychoactive found in certain plants. Phase 2b of the LSD-for-anxiety trial will start sometime in Q4. Before that, MindMed will need to file an investigational new drug (IND) application with the U.S. Food and Drug Administration (FDA), so investors can expect an appreciable bump in stock price if regulators assent to the trial.

Similarly, the company plans to initiate a phase 2a proof of concept trial to investigate the impact of microdosing LSD and psilocybin (magic mushrooms) for adult ADHD. But perhaps the largest potential stock impact will stem from the results of its phase 1 trial for addiction using the compound derived from ibogaine. If things proceed as planned, investors should know whether the project can proceed to the next phase by the end of the year, given that the trial itself is scheduled to conclude in the third quarter.

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