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Mind Medicine: Great Potential But Questionable Business Model

Mar. 03, 2021 1:24 PM ETMind Medicine (MindMed) Inc. (MNMD)57 Comments
Andreas Repeta profile picture
Andreas Repeta


  • MindMed's CEO has sold almost 25% of his shares in recent months.
  • Tabernanthalog, 18-MAC, ME-18-MC could erode 18-MC's potential.
  • Conducting LSD-assisted psychotherapy via videoconferencing is potentially hazardous and could result in lawsuits.
  • The underlying fundamental potential is enormous if the company steers in the right direction based on Bayesian scenarios.

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Mind Medicine (MindMed) Inc (NEO: MMED and OTCQB: MMEDF) has an interesting pipeline that could potentially revolutionize opioid-addiction treatment and anxiety-treatment via the use of psychedelic-inspired medicines. However, several competing molecules to its flagship molecule 18-MC (18-MAC, ME-18-MC, Tabernanthalog) could erode its competitive advantage and future margins, and interestingly, MindMed has future plans to conduct LSD-assisted phychotherapy via telehealth.

The CEO has also sold almost 25% of his shares, which raises doubts about an imminent Nasdaq uplisting in Q1 of 2021. If a Nasdaq uplisting is postponed, there is a high likelihood of price collapse. While MindMed has great potential, it is based on a questionable business model. I would suggest abstaining from investing until there is more clarity from management's side.

MindMed Pipeline

Source; MindMed investor presentation

I will primarily focus on analyzing two indications MindMed currently pursues;

  • 18-MC for opioid-use-disorder (OUD)
  • LSD-assisted psychotherapy for anxiety


18-MC is a derivative from psychedelic Ibogaine. Ibogaine, on its own, shows tremendous potential in extinguishing opioid-addiction at its roots, unlike traditional opioid-replacement-therapies (ORT), such as Methadone. Methadone is a synthetic and long-acting opioid that a physician prescribes as a substitute therapy for opioid addiction.

In other words, addiction is not extinguished with Methadone, merrily substituted with a legal opioid. Ibogaine has therefore been used in some countries, mostly in "Ibogaine-clinics," in the treatment of OUD. However, Ibogaine has some negatives making it unsuitable for some individuals in the treatment of OUD. First, it is potently cardio-toxic, rendering it unsuitable for individuals with prior existing heart

This article was written by

Andreas Repeta profile picture
BSc in Business & Economics.I am an avid follower of markets and mainly write long analyses of equities. Particularly interested in macroeconomics, geopolitics, and applying a topdown-view of markets. Specialized in analyzing market share and potential monopolistic, duopolistic, and oligopolistic market scenarios.andreas.repeta@eastinvest.org

Analyst’s Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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