MindMed (MNMD) down 3% as FDA pauses LSD drug application
15:05, 21 December 2021
Mind Medicine (MNMD) stock fell on Tuesday as the US Food and Drug Administration (FDA) placed a hold on the company’s drug application to trial lysergic acid diethylamide (LSD) for the treatment of generalised anxiety disorder.
In pre-market trading, the stock was down 10%. In the opening minutes of Tuesday’s trading session, MNMD stock fell as low as $1.53. As of 09:50 am EDT (UTC-5), the stock was down 3% at $1.58.
“Our team has a tremendous sense of urgency to bring new treatments, such as LSD, to the many patients in need, particularly given the growing mental health epidemic,” MindMed CEO Robert Barrow said in a press release.
Confident of potential
“We remain highly confident in the therapeutic potential of LSD to usher in a new treatment paradigm for these disorders, and we look forward to working closely with FDA to satisfy all outstanding concerns as rapidly as possible,” the CEO said.
The biotechnology company said additional details on the FDA’s decision is expected within a month.
MindMed made an “Investigational New Drug Application” to the FDA to support its Phase 2b trials of LSD as a treatment for generalised anxiety disorder.
Mental health biotech
MindMed is a biotech company that seeks to discover, develop and deploy psychedelic-inspired medicines and therapies to address mental health and addiction.
It is assembling a drug development pipeline of treatments based on psychedelic substances, including psilocybin and LSD.