INN takes an inside look at the already seismic impact of Compass Pathways’ launch into the psychedelics space.
In the wake of a new public listing that has heightened interest in psychedelics, two executives broke down the importance of this development for the Investing News Network (INN).
In September, the psychedelics investment story received a boost thanks to the initial public offering (IPO) of Compass Pathways (NASDAQ:CMPS), which Harris Fricker, president of Stifel Canada, recently referred to as the “highest-profile listing to date” for the psychedelics space.
In an email to INN, Richard Skaife, founding partner of the Conscious Fund, said the listing demonstrates a wider appetite for psychedelics investments.
Skaife’s colleague, Michael Hoyos, co-founding partner, Americas, with the Conscious Fund, added that the Compass listing represents the largest capital markets transaction in the space so far.
“It’s shown to the world what insiders have known for a long time — that this vision of bringing psychedelic medicine to the world isn’t a pipe dream, it’s very real and it’s happening now,” Hoyos said.
The investor added that the industry will collectively look back on this moment as the “key inflection point” for the growth of psychedelics as it attracts more investors.
Hoyos has previously outlined the work done by the Conscious Fund as a shepherd of the conversation around psychedelics and its normalization as a business model.
The rise in attention is positively affecting the market, as well as some of the most recent entries in the growing psychedelics stock market, as one executive told INN.
“There’s a palpable momentum behind psychedelics right now,” said Ronan Levy, co-founder and executive chairman of Field Trip Health (CSE:FTRP), a Toronto-based psychedelics clinic operator dabbling in a variety of segments of the psychedelic industry.
This most recent public listing on the Canadian Securities Exchange (CSE) capped off a busy season for psychedelics investments as investors in the space continue to gain exposure options for different segments of the business.
Field Trip is proof of that, as the company’s primary business is the development of its clinic network across North America. These spaces only offer patients ketamine treatments for now, but the company is also interested in the development of novel drugs utilizing psychedelic compounds.
Clinic operator makes public markets debut in Canada
“Certainly the success Compass Pathways has had on the NASDAQ since listing … is reflective of the fact that you have institutional investors, who tend to be more long-term focused, coming into the industry,” Levy said to INN about the wider impact of the Compass IPO.
Levy said all the praise Compass is getting in terms of its position to capitalize on the revolution of mental health treatment is warranted.
After Compass made its public debut and Mind Medicine (MindMed) (NEO:MMED,OTCQB:MMEDF) confirmed its intention to also pursue a listing on the NASDAQ, experts have begun pointing to the exchange as the eventual home for the evolving psychedelics space.
When asked about the potential for a listing on the senior US exchange, Levy said Field Trip is open to exploring a listing in the future, but at the moment it is focused on its brand-new CSE stock debut.
“The US still has some of the most healthy capital markets, and certainly the NASDAQ is a great stock exchange, particularly for biotech companies,” said Levy. “I think this is still very much a biotech and health tech conversation for psychedelics.”
MindMed plans to obtain a dual listing on the NASDAQ to complement its current NEO Exchange public listing. A spokesperson for MindMed confirmed to INN that a potential NASDAQ approval would let the company dual list in the American and Canadian capital markets.
“Compass’ successful IPO is further evidence that psychedelics are gaining traction as a viable solution for treating mental health and addiction,” JR Rahn, co-founder and co-CEO of MindMed, said.
While it’s clear the Compass listing is the first of its kind and is a magnifying moment for the overall sector, Hoyos told INN that at the end of the day, the results will be what matters.
“Clinical approvals will ultimately speak for themselves, so at a fundamental level the long-term success of the sector does not necessarily rely on near-term headlines,” he said.
Watch the full June interview with Rahn above.
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Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.