What happened
A volatile stock even by the standards of the ever-seesawing biotech sector, Mind Medicine (NASDAQ: MNMD) -- also known as MindMed -- had a good session on the market Tuesday. On some good news from the lab, the clinical-stage company's stock rocketed to a nearly 6% gain on the day.
So what
MindMed, which aims to use psychedelic compounds to treat brain disorders, said it has launched a phase 1 clinical trial to gauge the effects of MDMA on healthy human volunteers.
Used as an illegal drug, MDMA stimulates the central nervous system of the user to produce pleasant effects on the user. The tablet form of the drug is better known by its nickname, ecstasy.
According to MindMed, the acute effects of two of the substances in the trial -- R-MDMA and S-MDMA -- have not previously been evaluated in any studies on human subjects. The company added that pre-trial research indicated that R-MDMA produces "acute prosocial effects," like empathy.
The phase 1 trial will be a randomized, placebo-controlled, double-blind study. The company plans to enroll 24 participants, some of whom will be administered the placebo.
Now what
The timing of MindMed's announcement is fortuitous, since it follows the company's discouraging announcement that it aims to float a rather dilutive share and warrant issue. This latest news shows that the biotech is about to walk the walk as a researcher with this study on a well-known psychedelic and stimulant.
10 stocks we like better than Mind Medicine (MindMed) Inc.
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Mind Medicine (MindMed) Inc. wasn't one of them! That's right -- they think these 10 stocks are even better buys.
*Stock Advisor returns as of September 30, 2022
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
