Tomorrow MindMed ($MNMD) kicks off the Psychedelics #ShroomBoom 🍄
Background on the Sector
There are three topics everyone who wants to understand the Psychedelic Sector needs to know up front:
1) Intent: This sector is fundamentally different from the Cannabis Sector in a large way. The target market is primarily medicinal uses rather than recreational uses. Cannabis has a large recreational movement, where psychedelics have a small one. While this may deter some folks, I find it reassuring: to play in this space a company must be serious and committed.
2) Diversity: There are a number of drugs in the psychedelic space – psilocybin (mushrooms), LSD (acid), MDMA (ecstasy), ketamine (anesthetic), to name a few. Each is in some stage of clinical trials, and each company is attempting to use different ones to treat different mental and behavioral health conditions. These conditions are diverse as well, though the largest target markets include ADHD, anxiety, depression, PTSD, and drug and alcohol addiction.
3) Delivery: Psychedelic research today is not seeking to put high volumes of over-the-counter mushrooms or LSD pills in your local CVS. Psychedelics are being researched in controlled microdoses, and the intended delivery is by trained therapists through guided psychotherapy sessions. Psychedelics on their own may give your mind a period of disconnection and subdued feelings of fear, but with proper guidance from a trained therapist this period also becomes an opportunity for "rewiring" old mental blocks that lead to mental illness. Some people begin to break through chronic mental health barriers in just a few appointments. CNN recently covered the sector in an hour long special under Lisa Ling’s "This is Life" series called "Psychedelic Healing" (Season 7, Episode 6). This demonstrates the delivery method well, as well as several early success stories.
MindMed DD –> Kevin O’Leary, Bruce Linton and the Najarian Brothers are in this
Though my summary is below, don’t just take my word for it! MindMed has an incredibly well organized website where you can see much of this for yourself.
As an investor in a sector with a diversity of molecules and a diversity of applications, you want a company that has a diverse approach. That’s MindMed – which is in Phase 1 or Phase 2 trials with each 18-MC, LSD, MDMA, DMT, and psilocybin tackling a variety of conditions, including anxiety, opioid withdrawal, ADHD, and cluster headaches, to name a few. This diversity give MindMed a high chance of having not just one, but several breakthrough molecules. Kevin O’Leary (yes, Shark Tank’s Mr. Wonderful) is perhaps the most well-known investor in MindMed.
As an investor in a sector that requires integration with therapists, including new tools and training, you want a company that is developing more than just the necessary drugs. MindMed is the whole package. MindMed has paired with NYU to develop therapist training strategies and has announced its launch of Albert, a digital medicine division meant to tie it all together. MindMed’s recent announcements have indicated they are actively hiring to give this division more depth and to potentially undertake an acquisition in the digital platform space. MindMed is already thinking about how we make this work. In the future, a therapist will have use this digital tool to keep a list of psychedelic options catered to a host of mental conditions, and each will be tied to delivery strategies and training. MindMed’s wholistic view from clinical trials through implementation is what sets them apart from others in the sector.
As an investor in a sector that is "breakthrough" in nature, you want a company that has the right leadership. In January, Robert Barrow entered the MindMed team as the Chief Development Officer. Robert brings extensive knowledge of psilocybin research, but more importantly he was part of securing the Breakthrough Therapy Designation with the FDA for his prior psilocybin program (Phase 2 Clinical Trials) at the Usona Institute. MindMed hopes to secure similar breakthrough designations for their trials and fast-track them. Bruce Linton, former Canopy Growth (CGC) Chairman and CEO, sits on MindMed’s Board of Directors. Dr. Halperin Wernli and Carol Nast, President and COO respectively, each help round out the management team with over 50 combined years of leadership in drug and product development in emerging markets and heavily regulated environments.
Finally, I know every investor wants to know how much the stock price will move over time, so here are a few catalysts to think on:
Short-term catalyst: MindMed will uplist onto NASDAQ on Tuesday, April 27th, which will open it up to a myriad of retail (Robinhood) and institutional investors who currently don’t have access to the stock on the NEO.
Long-term catalysts: This is more obvious, but of course any trial milestones are catalysts! I’m particularly excited about August/September this year when we expect Phase 2b trial results to begin rolling in, though Phase 1 announcements will continue to occur as the portfolio grows as well. With any luck, breakthrough designations will accelerate trials and portfolio growth further.
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April 26, 2021 at 04:43PM