Following another soft opening on Wall Street, Clearmind Medicine (NASDAQ:CMND) provided an optimistic contrast thanks to positive trial results. Specifically, the biotechnology firm — which focuses on the discovery and development of novel psychedelic-derived therapeutics — saw encouraging advances regarding its novel treatment targeting cocaine addiction. Subsequently, CMND stock skyrocketed on the broader implications for the psychedelics medicine industry.
According to the company’s press release, Professor Gal Yadid and his team from the Gonda Multidisciplinary Brain Research Center located at Bar Ilan University in Israel conducted the most recent trial. This study followed a previous experiment that demonstrated a marked decrease in cocaine-induced craving among rats treated with MEAI, Clearmind’s innovative psychedelic molecule.
“These results, previously announced, offer a beacon of hope, demonstrating the potential efficacy of MEAI in reducing cocaine-related conditions. Our unique psychedelic compound has shown remarkable results in pre-clinical trials for cocaine addiction,” said Clearmind Medicine CEO Dr. Adi Zuloff-Shani.
Further, Dr. Zuloff-Shani added that the latest data may offer “a potential paradigm shift” in how the scientific community approaches cocaine addiction. As of this writing, no dedicated treatment for the condition exists.
Further, the research associated with MEAI resulted in a patent application in the U.S., which is part of Clearmind’s ongoing collaboration with SciSparc (NASDAQ:SPRC), a clinical-stage pharma focused on treating central nervous system disorders.
CMND Stock Soars on Rising Credibility
Unsurprisingly, given the positive trial result, CMND stock bounced up sharply, initially gaining 45% before adding to that performance during the early afternoon session. Fundamentally, the encouraging data drives a much-needed credibility boost for Clearmind and the broader psychedelics industry. Historically, modern psychedelic research began in 1938. However, governmental interventions in the 1970s and 1980s practically halted further investigations.
Still, as a paper listed on the National Library of Medicine’s website stated, the interventions occurred “despite evidence of the limited medical risks and therapeutic potential of psychedelics.” Finally, though, these roadblocks faded following persistent education and advocacy. In addition, the great need associated with treating cocaine addiction globally helped invigorate CMND stock.
As The New York Times mentioned last year, psychedelic drugs may represent the next big addiction treatment. Based on exciting, positive outcomes prescribing psilocybin — a hallucinogenic alkaloid found in some toadstools — Johns Hopkins Center for Psychedelic & Consciousness Research expanded its study to include more human participants. It also received a $4 million grant from the National Institutes of Health.
According to Acumen Research and Consulting, the global psychedelic drugs market size reached a value of $2.6 billion last year. Further, experts project that the sector could hit a valuation of $7.1 billion by 2032, representing a compound annual growth rate (CAGR) of 10.9% from 2023.
Why It Matters
At the moment, no analyst covers CMND stock, which isn’t shocking based on the risky financial profile. Currently, the underlying biotech generates no revenue. However, the company carries cash and cash equivalents of $3 million with no long-term debt.
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On the date of publication, Josh Enomoto 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.
