CMPS - COMPASS Pathways: Will MDMA-Assisted Therapy Pave The Way Or Slam The Door Shut?
2024-04-25 12:11:42 ET
Summary
- The US FDA is due to make a decision regarding MDMA-assisted therapy in August 2024 – this will be a critical event for the future of COMPASS Pathways.
- COMPASS Pathways’ share price has exhibited extreme volatility over the last year, highlighting the speculative nature of investing in the psychedelics sector.
- COMPASS Pathways has experienced delays with its COMP 005 clinical trial, but is confident that its COMP360 New Drug Application timeline remains unchanged.
- The departure of the company’s co-founders came as a surprise, and follows on from the sudden exit of the group’s CFO in late 2023.
Introduction
It’s been slightly over six months since I last published on COMPASS Pathways plc ( CMPS ). With so much going on in the psychedelics space, and 4Q23 results having been released in late February 2024, an update of my thinking on CMPS felt overdue. Readers of my previous research will be familiar with my concerns regarding the company’s balance sheet and cash runway; whilst those concerns continue to be front of mind, I will revisit that topic in a future update. In this note, I will provide an overview of key positive and negative issues that have emerged since November 2023. CMPS and other stocks in the psychedelics sector remain highly speculative investments; the rather wild ride that the CMPS share price has had over the last twelve months serves as a reminder of the risk involved with such investments....
COMPASS Pathways: Will MDMA-Assisted Therapy Pave The Way Or Slam The Door Shut?