© Reuters. Is Mind Medicine a Good Psychedelic Stock to Buy?
Even as COVID-19 related restrictions ease, mental health issues are on the rise. Consequently, Mind Medicine (MNMD) is attracting investors’ attention due to its drug development pipeline of innovative treatments that are based on psychedelic substances. But, given that the company’s drugs are still in their developmental stage, is it wise to bet on the stock now? Let’s find out.
Psychedelic medicine biotech company Mind Medicine (MindMed) Inc. (MNMD) made its debut on Nasdaq Capital Market on April 27, 2021 while retaining its listing on the Neo Exchange Inc. under the symbol MMED. The company didn’t have a great market debut as its shares fell 29% on the first day of trading on the Nasdaq. And the stock has lost 25.6% over the past month to close Friday’s trading session at $3.40.
While the demand for treatments based on psychedelic substances is growing because mental health issues are on the rise despite the easing of restrictions related to the COVID-19 pandemic, MNMD’s psychedelic inspired medicines are still in their developmental stage. Also, its net and comprehensive loss for fiscal first quarter ended March 31, 2021 came in at $14 million.
MNMD still has a long way to go to complete the development of its products, so its near-term prospects look bleak. As the company’s co-founder and CEO JR Rahn told Yahoo Finance, “These are still very early innings for us.”
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