With multiple active patent applications, COMPASS is building on its leadership position in psilocybin therapy and mental health care
Every patient has a unique story – and deserves the best mental health care available. Unfortunately, for many years there were regulations on the books that prevented scientists from pursuing the most promising clinical pathways.
Thankfully, the barriers to better treatments are being broken down in the 2020’s. Psilocybin, a chemical found in certain types of mushrooms, is finally starting to gain acceptance among regulators as a viable alternative to conventional treatments for patients struggling with major depressive disorder and other mental health conditions.
Various forms of psilocybin-assisted therapy have been decriminalized in Denver, Oakland, Santa Cruz, and Chicago, as well as the state of Oregon and Washington D.C.
And as we bear witness to a turning point in the mainstreaming of psychedelics-assisted mental health therapy, one biotechnology firm known as COMPASS Pathways (CMPS) is ambitiously advancing the science – and they’ve got the patents to prove it.
A Closer Look at CMPS Stock
You’re reading this at exactly the right time, as CMPS stock happens to be sitting at the bottom of a range that’s been forming for a full year.
At the close of the markets on May 25, the stock price settled at $33.62. Throughout the past 12 months, whenever CMPS stock touches the low $30’s, it’s a clear setup for a bounce to at least $40 or even higher than that.
In fact, the stock’s price action demonstrated not just once, but twice that it’s capable of jumping into the $60 area. This occurred in December of last year, and then again in February of 2021.
Now that CMPS stock is reloading for another possible run, it’s time to learn more about the company – and then consider adding COMPASS Pathways to your portfolio.
Breaking Through Resistance
Just as CMPS stock is poised to break through its resistance levels, COMPASS Pathways is leveraging breakthrough science to address the widespread problem of treatment-resistant depression (TRD).
We’re talking about a significant unmet need and a vast addressable market, as 100 million people are struggling with TRD. Yes, there are conventional medications, but they’re often known for being addictive and/or ineffective in many cases.
As a promising alternative, COMPASS Pathways is developing COMP360 psilocybin therapy for TRD. Academic studies have shown that psilocybin therapy can improve outcomes for patients – and regulators acknowledge the healing potential, as COMP360 has already been designated as an FDA Breakthrough Therapy for TRD.
Financially, there’s a lot at stake here. The U.S. health-care costs of antidepressants, mood stabilizers, and other conventional treatment add up to around $17,000 to $25,000 annually per patient.
Clearly, there’s got to be a better way – and COMP360 is it. The Phase I trial was successfully completed and showed that COMP360 was generally well tolerated in healthy participants; currently, a highly anticipated Phase IIb trial for COMP360 in TRD is under way in 22 sites throughout 10 countries.
Well-Funded for Progress
And, here’s more good news: COMPASS Pathways’ first-quarter report just came out, and the company has some terrific data points to share:
- Two new patents during the quarter
- Cash position was $179.5 million as of March 31
- A post-quarter equity financing round of $144 million
- Results from the Phase 2b clinical trial of COMP360 expected by the end of 2021
Regarding the two new patents, one covers oral dosage forms of crystalline psilocybin and methods of treating major depressive disorder, while the other confers the rights to crystalline psilocybin formulations and methods using those formulations for the treatment of major depressive disorder.
And concerning the upsized financing, COMPASS Pathways CEO, Chairman, and Co-founder George Goldsmith specified how this capital infusion will benefit multiple stakeholders, as well as the medical community as a whole.
“Our recent financing gives us additional resources to work even faster and to expand our efforts, grow our team and focus on developing new indications, new compounds and new technologies, building on our leadership position in psilocybin therapy and mental health care,” Mr. Goldsmith explained.
On top of all that, data on COMP360 was published in April in the prestigious New England Journal of Medicine, from an independent study performed at the Imperial College of London, contrasting and comparing it with traditional antidepressants – with positive results for COMP360, of course.
The Takeaway
For price-focused investors, CMPS is precisely in the buy zone, with recent history demonstrating that immediate gains are a definite possibility.
And for anyone focused on the company’s financials, it’s comforting to know that COMPASS Pathways is fiscally on solid ground and fully capitalized to continue the company’s truly groundbreaking program in clinically proven, patent-protected psilocybin therapy.
