Here’s a bit of trivia for you: MindMed (NASDAQ:MNMD) is only the second developer of psychedelic drugs to get listed on a major U.S. stock exchange. Hence, it was a signal event when MNMD stock debuted on the Nasdaq Exchange in April.
It might strike you as speculative to invest in a psychedelic medicine company. And I’ll grant you that there is a certain amount of risk involved with this particular industry.
On the other hand, there are signs of reform and possible decriminalization. For instance, the citizens of Oregon and the District of Columbia have voted to legalize specific uses of psilocybin, the primary active ingredient in “magic mushrooms.”
And now that the company’s stock has graduated from the over-the-counter market to the Nasdaq — and in light of some encouraging news about the company’s financial footing — it may be time to consider an investment in MindMed.
MNMD Stock at a Glance
Prior to the Nasdaq uplisting on April 27, MindMed’s shares traded on the OTCQB market as MMEDF stock.
As recently as September 2020, the stock was trading at around 34 cents apiece. In hindsight, we can say that this was quite a bargain.
Since that time, there have been several attempts to push the stock above the key $4 level and keep it there. This occurred in December, and then again in February of this year.
There was a third attempt at a bull run in late April as MMEDF stock was about to be converted into MNMD stock. Apparently, the trading community was excited about this event.
Unfortunately, the share price declined by 29% during the stock’s first day of trading on the Nasdaq. However, MindMed co-founder and CEO JR Rahn didn’t seem fazed by this inauspicious debut.
“We’re not going to be dictated by the day-to-day fluctuations or hour-by-hour fluctuations of our stock. We have 180,000 shareholders. A lot of them are very mission driven,” Rahn declared. I’d say that’s a good attitude for the CEO, as well as for the long-term stockholders.
Targeting Pain with Psychedelics
Psilocybin, LSD and other psychedelics have been demonized and kept largely illegal for many years, particularly in the United States.
At least in part, this could be because they gained a reputation for being “party drugs” and for being part of the counterculture movement of the 1960’s and 1970’s.
In the 2020’s, however, these drugs are being explored for their potential to heal and to alleviate pain.
Reportedly, MindMed is leading the way with Project Angie, a program designed to advance the development of psychedelics, including LSD, to treat pain conditions.
Project Angie could be quite lucrative for MindMed as IQVIA expects the global market for analgesics to exceed $31 billion by 2030.
Presumably, we’re not talking about just alleviating a simple headache here. Through Project Angie, MindMed is evaluating an indication for medical psychedelics “in a common, often debilitating, chronic…