What Happened to the COMPASS Pathways Stock Price Today?
- Shares of psychedelics-inspired medicine developer COMPASS Pathways (NASDAQ:CMPS) jumped more than 5% on Monday, continuing what has been a multi-day uptrend for CMPS stock.
- CMPS stock is now up more than 15% over the past few trading days.
Why It Happened
- The so-called “Shroom Boom” — wherein the world develops a new class of psychedelic-inspired medicines to more effectively treat a wide array of mental health disorders, like substance abuse, anxiety, and depression — is gaining awareness, traction, and momentum. This “rising tide” is benefitting CMPS stock.
- One of the smaller players in this space — Mind Medicine (OTCMKTS:MMEDF) — won approval to up-list to the Nasdaq. Trading for MindMed on the Nasdaq under the ticker “MNMD” will start on April 27.
- One of the larger private players in this space — ATAI Life Sciences, backed by billionaire VC Peter Thiel who was famously Facebook‘s (NASDAQ:FB) first investor — is planning to raise $100 million in an IPO very soon.
- An April 2021 study from the Imperial College London found that psilocybin — the active ingredient in “magic mushrooms” — is more effective and faster at treating depression than Lexapro.
- The New York Times recently did a positive piece on the psychedelic-inspired medicines sector.
- This strong confluence of tailwinds has prompted a big rally in CMPS stock.
Does It Matter?
- All of these developments are favorable developments for COMPASS Pathways. The more investors and the public are aware of the “Shroom Boom,” the more money will flow into shroom stocks, and the higher CMPS stock will go.
- But the big news here will come in late 2021.
- That’s why COMPASS Pathways will release Phase 2b trial data for its leading drug candidate, COMP 360.
- COMP 360 is considered the leading drug candidate in this entire industry. In late 2021, it will become the first psychedelic-inspired drug to report clinical data.
- If that data is good, CMPS stock will soar to the moon in 2022.
- Until then, shares are likely to remain range-bound, though trend slightly higher from today’s depressed levels.
CMPS Stock Price Forecast
- Long-term, we love COMPASS Pathways.
- The Shroom Boom is the next big investment megatrend in the healthcare/biotech sector. COMPASS Pathways is the leading company in this explosive megatrend.
- If COMP 360 pans out — and it should, given studies from NYU, Johns Hopkins, and others that show the robust benefits of psilocybin — then COMPASS Pathways has a huge commercial runway ahead of it.
- Within the next few years, CMPS stock could soar above $100 rather easily.
The Shroom Boom promises to be one of the most explosive investment megatrends of the 2020s. It will fundamentally reshape how we treat some of the most common mental health issues in our society, some of which have gone untreated for far too long. The Shroom Boom will fix substance abuse, depression, anxiety, and more.
CMPS stock is one of the best ways to play this Shroom Boom. That’s why it belongs in our exclusive, venture-capital-style research service, Innovation Investor, which is aimed at uncovering early-stage investment opportunities that have enormous, 10X-plus upside potential.
CMPS stock fits that profile. But it’s only one of about 50 or so stocks with similar explosive upside characteristics.
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On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.
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