Send me real-time posts from this site at my email
Motley Fool

Why COMPASS Pathways Mushroomed Almost 20% Today

What happened

Shares of biotech start-up COMPASS Pathways (NASDAQ: CMPS) weren't doing much of anything during this trading day until around 2:30 p.m., when they shot up 17%. Shares then settled back to close up 12% on the day.

Credit the popularity of CNBC for the move, as chairman, co-founder, and chief executive officer (CEO) George Goldsmith was on to tell his company's story, causing the jump.

So what

The company went public one month ago with an initial public offering (IPO) priced at $17 per share, and closed today's session at $38.39 after today's move. CEO Goldsmith went on CNBC this afternoon to discuss the company's psychoactive treatment for depression.

Image source: Getty Images.

He discussed the company's approach to transforming mental healthcare, using psilocybin, the active ingredient in psychedelic, or "magic" mushrooms.

Now what

The company is currently in Phase 2b of its clinical trials, where the efficacy of the treatment is tested. Goldsmith also noted that the treatment has received breakthrough therapy designation from the U.S. Food & Drug Administration (FDA), allowing it to expedite the development and review of the therapy.

In addition to the U.S., the UK-based company is doing clinical trials in eight other countries. The company expects to complete and report on its Phase 2b trials at the end of 2021, Goldsmith said in the interview.

COMPASS initially plans to use its psilocybin therapy for patients with treatment-resistant depression, anxiety, addiction and other mental illnesses. The treatment combines the use of the psychoactive substance with trained therapist psychological support.

10 stocks we like better than COMPASS Pathways plc
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and COMPASS Pathways plc wasn't one of them! That's right -- they think these 10 stocks are even better buys.

See the 10 stocks

*Stock Advisor returns as of October 20, 2020

Howard Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.


Source

Popular posts

Welcome! Is it your First time here?

What are you looking for? Select your points of interest to improve your first-time experience:

Apply & Continue