Psychedelics stocks traded higher on Thursday as investor optimism returned to the sector on the news that MindMed (NASDAQ:MNMD, NEO:MMED)'s LSD drug candidate was granted breakthrough therapy status by the US Food and Drug Administration (FDA) for the treatment of generalized anxiety disorder (GAD).
Shares of MindMed (NASDAQ:MNMD, NEO:MMED) led the charge, gaining 54% at US$9.15 in the mid-afternoon.
PharmAla Biotech (CSE:MDMA), a firm focused on the research, development and manufacturing of MDXX molecules including MDMA, gained 28.1% at C$0.20
Shares of atai Life Sciences (NASDAQ:ATAI, ETR:9VC), which announced earlier this week it has dosed the first patient in its Phase 1b trial of its oral formulation of DMT targeting treatment-resistant depression, added 11.8% at US$2.23.
Numinus Wellness Inc. (TSX:NUMI, OTC:LKYSF) added 9.1% to C$0.12. The company is developing psychedelic-assisted therapies through its psychedelic practitioner training program and clinical research in partnership with psychedelic drug developers.
Toronto-based Cybin Inc. (NYSE-A:CYBN, NEO:CYBN), which is developing a proprietary deuterated psilocybin analog for major depressive disorder and a proprietary deuterated DMT molecule for GAD, saw its shares add 7.7% at US$0.34.
Finally, shares of Compass Pathways (NASDAQ:CMPS), a UK firm developing its COMP360 psilocybin therapy for treatment-resistant depression, added 2.7% at US$11.20.