MKGAY - COMPASS Pathway: An Overvalued Psychedelic Company With A Single Mediocre Drug

• Biotechvalley Insights is initiating coverage of COMPASS Pathway (CMPS) with a "Bearish" rating at a 13 PT.
• CMPS has filed an IPO with an initial valuation of US$544M; since then the stock has rallied 210% as of today. I think the current share price is extremely frothy.
• The company has a single "mediocre" Phase 2 candidate, COMP360, which is a serotonin 2 receptor partial agonist for treating treatment-resistant depression (TRD). I have doubts about its commercial success.
• I am going to explore the market landscape and clinical data of COMP360 and explain why it will likely be a mediocre treatment option for TRD.
• The complex nature of its in-person therapy that requires 5+ visits to the clinic, reimbursement hurdles, and side-effect profile will be detrimental to COMP360's commercial success.

For further details see: