Could magic mushrooms be a life-changing therapy for people with anxiety? What about LSD? If you’re an optimist, your answer might be “maybe,” but if you’re Mind Medicine, (OTC: MMED.F) it’s an enthusiastic “yes.”
Mind Medicine is an exciting company at the forefront of the new psychedelic medicine industry. It hasn’t wasted any time in starting to build out a competitive advantage that’s based around domesticating psychedelic chemicals into predictable and controllable medicines. This diamond in the rough won’t be profitable for years — and I’m still ready to invest in it today.
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Yesterday’s contraband is the breakthrough therapy of tomorrow
Mind Medicine hopes to use substances like psilocybin (an active ingredient in “magic mushrooms”), LSD, and MDMA (also known as ecstasy) for tough psychiatric conditions like anxiety, opioid withdrawal, seasonal affective disorder (SAD), and attention deficit hyperactivity disorder (ADHD). While treatments for these maladies already exist, many are not curative or not completely effective in all patients. So the company is developing formulations of psychedelic chemicals that might not suffer from common drawbacks.
Its development pipeline has a handful of early-stage clinical trials. In particular, its “Project Lucy” investigating LSD as a treatment for anxiety will conclude the first part of its phase 2 clinical trials in Switzerland in early 2021, and management hopes to get the ball rolling with the U.S. Food and Drug Administration (FDA) shortly thereafter. Of course, it’ll need to push through longstanding taboos about psychedelic chemicals to succeed stateside. With major pharma companies like Johnson & Johnson initiating new psychedelic drug development programs using drugs like esketamine, MindMed will be in good company.
Experienced pharma investors will point out that the chemicals the company is developing can’t be patented, as they are either of natural origin or were discovered long ago by someone else. This isn’t a problem, however, because…