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Mind Medicine: Much Needed Novelty With Inherent Risks And Bubbly Right Now

Mar. 08, 2021 10:54 AM ETMind Medicine (MindMed) Inc. (MNMD)27 Comments
Swedmark Research profile picture
Swedmark Research


  • MindMed is targeting intriguing psychiatric issues with lucrative markets such as opioid addiction, anxiety, ADHD and cluster headaches.
  • Recent partnerships and acquisitions seem promising and bring credible people to support the company.
  • Accomplishing announced goals and starting sales is protracted, as the earliest project may enter phase 3 as late as 2024.
  • The stock price is bubbly after the recent surge; for that reason I expect falling prices as sentiments cool off and challenges trigger reality checks.
  • Long story short, I have a positive outlook on MindMed but will wait for a better buying opportunity.

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(Source: mindmed.co)


MindMed (OTCQB:OTCQB:MMEDF) IPO'd on the 3rd of March 2020 to become the world’s first public psychedelic biotech company.

  • The principal mission is to discover, develop and deploy psychedelic inspired commercial drugs that ease suffering and improve mental health.
  • It is working on new classes of medicines inspired by psychedelics without hallucinogenic effects.
  • Another mission is to explore benefits and ways to optimize the clinical usage of already known psychedelic agents (i.e. LSD, MDMA) which produce a hallucinogenic or ''experiential'' effects, all legally under FDA supervision.

Two modalities:

(Source: Investors deck, Feb 2021)

MMED is making efforts to address the opioid crisis, anxiety disorders and ADHD. All those target areas are important health issue with negative implications on society and a lucrative drug-market spent on by the billions.

One of the company's more interesting trials is on 18-MC, a non-hallucinogenic derivative substance of the African psychedelic Ibogaine, which had previously shown potential to treat opioid addiction in prior studies.

The company is the most diverse within its sphere and seeks monetization through patented sales of drugs or dosage optimization methods for specific psychiatric/addiction indications.

Partnerships and Acquisitions

MMED announced promising partnerships and acquisitions during 2020.

One announced on April 2020 is a research partnership with Liechti Laboratories in Basel, Switzerland (Funny enough, the same place where LSD was first found). This specific lab and its manager Matthias Liechti (cited 9000+ times on Google Scholar) have been conducting psycho-pharmacological research on LSD and MDMA for years. This partnership makes Liechti's extensive database

This article was written by

Swedmark Research profile picture
Medical student, University of Gothenburg, Sweden. My mission is to analyse value-stocks and start-ups through professional medical lenses. Through my articles I aim to support your best judgement, without giving clear-cut investment advice.Areas of interest: Biotech, genetics, psychiatry.

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.

I intend to buy and hold this stock at a lower price.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Comments (27)

"I'm willing to open a position at a fair price (Market cap $0.5-0.6B), ...."

Looks to be impossible to buy at that price ever again (after the news of today).
I have tested many of the drugs in the product line in my first years of college and can confirm that they make patients feel very good.
Christopher Fortin profile picture
I need some MDMA to deal with the PTSD I got from the MMED volatility.
Well this is certainly not the right path to hit the $5 needed to get listed.
Swedmark Research profile picture
@Randol33 I have heard of number such $3-4 dollars but not $5, is it a new requirement or has there been a new announcement?

With regards
@Swedmark Research Oops you are correct $4 it seems, for some reason I had $5 in my head.
Christopher Fortin profile picture
@Randol33 I think it was 5 many years ago.
Mmedf listed in the russell after the close today?
cannot find anything on this. if you have a source please link it.
thanks, definitely a positive step... but which index exactly? this only really matters if it is a widely benchmarked index....
in the US, inclusion into the Wilshire 5000 would not matter much, because 1) no one uses it as a benchmark and 2) those that do will not necessarily buy all the stocks - they will likely use proxy basket
Swedmark Research profile picture
There has been a mistake in this article regarding cash, assets and P/B-ratio, I have now edited the article and awaiting publication by the editor.

The following sections are edited:
Financials & Valuation
Risk summary, 3.

The latest financial statement in mindmed.co and also financials on SA state 19M in cash. There had been financing operations through stock sales closed in July 2020 (92.3M CAD).

I prioritized the September 2020 balance sheet information over the July 2020 press release. But I realize now that was wrong, comments from a reader and newer press-release state $162M USD of cash in MMED.

They have $203 Cad cash on hand, where are you getting your values from?
Swedmark Research profile picture
@Signore Lanky
Financial statement in mindmed.co and also on SA state 19M in cash. There had been financing operations through stock sales (92.3M CAD) closed in July 2020.
I prioritized the September 2020 balance sheet information over the July press release. But I realize that was wrong. A newer press-release from Mar 9th announced $162M USD.

This will be edited and I apologize for this mistake.
THC is schedule 1. WE have very few treatment options that are actually viable for PTSD--i think this would work based on knowledge of how psychoactives perform and what we understand is the basis for ptsd--but its not gonna be like pop this pill and your cured, its a process. It is still a risky venture because the current pharmaceutical industry relies on the fact that none of the current medications actually work longterm for a host of mental health problems--hence why they keep coming up with the new prozacs out there. Its sad really how much governments and regulations keep people from viable solutions to their problems. I think this is a risky play but im in it--full disclosure
Razi Syed profile picture
Did you really base your whole valuation of a biotech company on P/B ratio?
Swedmark Research profile picture
@Razi Syed More of a mention within a context. It isn't unexpected that P/B will be high in a startup in biotech (The median P/B in biotech is 7.18, pharma 5.04). Nevertheless it is still a factor and in this case it speaks for a lot of enthusiasm for this young company.
I expect that this enthusiasm will be challenged for the reasons mentioned above.

MMED's diverse portfolio is nonetheless a big factor in valuation of the company as ''whole'' like you suggested. It is promising but nothing is guaranteed right now.
informative article.
what is the timing on the potential uplisting?
Swedmark Research profile picture
@ShakeOilSalesman Thank you!

NASDAQ state that the application processes usually takes 4-6 weeks with possibility of considerably shortening.
MMED publicly announced submission to NASDAQ in september last year so some questions are raised as to why it has taken so long.
They would get advice and assessment from Canaccord Genuity Group to make the uplisting.

I don't have more specific information on the timeline but the prolonged process doesn't bode well.

In addition in SA news, today: An announcement from Canaccord Genuity Group regarding a purchase of 6 000 000 MMED voting shares to be resold in Canada.

Logically speaking, selling share in Canada now points to some sort of failure or anticipation of failure, as they trying other ways than NASDAQ.

seekingalpha.com/... (Sep, NASDAQ)

seekingalpha.com/... (Mar, Sales in Canada)
@Swedmark Research anyone buying this stock (or any OTC) for the prospect of an up list shouldn’t hold their breadth. The compounds they are studying are still Schedule 1 narcotics and that will preclude their ability to gain banking, just like the cannabis stocks
Ross Scruggs profile picture
@Spiritus fermenti 18-MC is not a schedule I drug.
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