Shares of biotech company Mind Medicine (NASDAQ:MNMD) are climbing 3% today after the company reported positive results from a clinical trial of one of its psychedelic therapies.
New York City-based Mind Medicine, also known as MindMed, reported information about its trial of psilocybin in patients taking the antidepressant Escitalopram. Broadly, MindMed wants to know if these medications can work together.
The results pave the way for additional studies, but they are overall a positive development for the company. For those unfamiliar, MindMed aims to treat mental health conditions and addiction using psychedelic and experiential therapies.
What Happened With MNMD Stock
In a news release, Mind Medicine reported the first data on the interaction of the selective serotonin reuptake inhibitor (SSRI) escitalopram with psilocybin in humans. MindMed shared that the SSRI reduced negative effects of psilocybin such as anxiety and adverse cardiovascular reactions. However, the antidepressant did not impact the positive effects of psilocybin use.
“Further studies are needed with a longer antidepressant pre-treatment time and patients with psychiatric disorders to further define interactions between antidepressants and psilocybin or other psychedelics,” said Dr. Miri Halperin Wernli, executive president of MindMed, in the news release.
Why It Matters
The report is positive news for MindMed, which is a small company focused on psychedelic treatments. The results from the clinical trial provide support to the work MindMed is undertaking and shows that the company is on track with its treatments and business strategy.
The positive trial is also good news for MNMD stock, which has fallen more than 40% over the past six months. Today’s move higher pushes the share price above $2 and lets shareholders breathe a sign of relief. While shareholders are not likely to get all their losses back in the near term, today’s reversal higher is still welcome news.
What’s Next for MindMed
Analysts and investors will be watching to see if MNMD stock can sustain and build on today’s positive move upwards. Key to the long-term success of MindMed will be more positive results from trials of its various psychedelic treatments. The ultimate goal, of course, is for the company to commercialize a treatment and bring it to market. Until that happens, expect continued volatility in the share price.
On the date of publication, Joel Baglole did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.