Magic Mushroom Company Compass Pathways Goes Public in New York
The UK based psychedelic company Compass Pathways went public in New York on Friday the 18th of September, listing on NASDAQ. Compass Pathways stocker soared 71% to $29 a share on its first day of trading after pricing an initial 6.7 million shares at $14 - $16 a share. Compass Pathways’ NASDAQ listing is expected to raise $125 million.
Compass Pathways has successfully patented a synthetic compound of psilocybin. Psilocybin is the active ingredient in magic mushrooms and the burgeoning psychedelic industry believes that psilocybin could be an effective treatment for treatment resistant depression.
The innovative use of psilocybin for medical purposes is showing serious promise in treating a variety of mental disorders. One particular condition that is showing it may be treatable through the use of psilocybin is Post Traumatic Stress Disorder (PTSD).
After obtaining breakthrough therapy status from the FDA in 2018, Compass Pathways were able to accelerate the drug development process. The Compass Pathways synthetic compound of psilocybin is currently in the middle of Phase IIb clinical trials. Compass Pathways intend to enable their medications to help treat millions of people around the world who have treatment resistant depression. Compass Pathways estimate the economic burden of treatment resistant depression to be in excess of $200 billion.
The funds raised from the company’s IPO will be deployed in further research and clinical trials. Compass Pathways are also working on developing digital technologies and applications that will be paired with the psilocybin therapies, to enable the patient to have the best experience possible and enhance the data that the company are able to collect.
Compass Pathways have backing from the PayPal co-founder Peter Thiel and Christian Angermayer. Angermayer’s office invested in 2017 after the company was founded in 2016. Peter Thiel owns 7.5% of Compass Pathways prior to the company listing on NASDAQ.