2023-06-07 11:26:58 ET
Mind Medicine ( NASDAQ: MNMD ) shareholder FCM MM Holdings said that it will push for the company to initiate a Phase 3 clinical trial for its lead drug candidate MM-120 LSD in December if its nominees are elected to the company's board at next week's annual meeting.
FCM said that it regards the company's current plan to pursue a Phase 2b dosing study as "unnecessary" and "time consuming." It said it also worries that the company, also known as MindMed, will burn through its $130M in cash in 2024, which would force it to raise capital and result in possible shareholder dilution up to 100%, according to a statement.
FCM, which said it holds a roughly a 3.5% stake in MindMed, added that if elected, its nominees would push for a Phase 3 trial testing MM-120 in the treatment of generalized anxiety disorder to begin in December, with an anticipated product launch in 2026.
It added that it plans to extend its share lockup period from June 15, 2025 to June 15, 2026, if its nominees are elected. MindMed's annual meeting it slated for June 15.
MindMed said Wednesday that it plans to hold its annual investor day on June 20.
Based in New York, MindMed has been developing psychedelic compounds such as LSD and MDMA for the treatment of psychiatric, addiction and pain disorders.
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For further details see:
MindMed shareholder FCM pushing for speedier development of lead drug