When most people think of anxiety disorders, they likely don’t think of psychedelic drugs. But that’s exactly how MindMed (NASDAQ:MNMD) is seeking to treat generalized anxiety disorder. The innovative company has been studying LSD as a treatment, generating plenty of speculation along the way. However, today brought some news from the U.S. Food and Drug Administration that delayed its progress. In a rare turn of events, MNMD stock is on the rise.
What’s Happening with MNMD Stock
Right now, investors unfortunately don’t know much about the FDA’s decision. MindMed said that it expects more details in the next month on the delay, and that it remains confident in its psychedelic options. We also know that investors appear to be regaining confidence in MindMed after a brief plunge. Shares dipped in early morning trading, but they quickly recovered. As of this writing, the stock is up nearly 2%.
Investors have taken the bad news in stride, deciding that it really is not that bad. Bulls are opting to help push shares back up rather than jump ship.
It’s also worth noting that MindMed has garnered quite a bit of traction on social media since this morning’s news broke with many users speculating as to what it may mean.
Why It Matters
MNMD stock hasn’t had a bad month. December began with the company reporting positive results following the clinical trial of a psychedelic therapy method, sending the stock up. It’s likely that we’ll see this again as the company moves forward with other trials.
Investors can also take comfort in the fact that MindMed is a company that hasn’t struggled to garner media traction. Regardless of how anyone feels about LSD, the use of it as a treatment method is a story that many find interesting. This also speaks to MNMD’s ability to potentially garner meme stock status. Even if these treatments are slow to gain regulatory approval, MindMed will likely stay in the public eye by virtue of its interesting nature.
What It Means for MindMed
Today’s events are significant because they have demonstrated MNMD stock’s ability to withstand setbacks. Many companies haven’t been so lucky.
We’re about to enter a new year and MNMD stock is certainly worth watching as 2022 takes shape. The company has some interesting projects in the pipeline and as they develop, public interest will likely grow, helping the stock rise as well.
On the date of publication, Samuel O’Brient 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.