MindMed (MNMD stock) announces first dosing of LSD drug in phase 2b trial


  • MindMed begins phase 2b study of LSD treatment.
  • MNMD stock surged 36% on August 18.
  • Shares of the small-cap added 9% on Wednesday.

MindMed (MNMD) announced early Thursday that it had begun its phase 2b trial for its Generalized Anxiety Disorder (GAD) drug MM-120. Shares of the psychedelic biotech star remained flat, however, at $0.87.

MindMed stock news

The MM-120 drug utilizes a form of LSD (lysergic acid diethylamide) to treat patients with brain disorders. The current trial is meant to find the optimal dosage for patients.

MNMD shares entered the news last week and led to a surge in the stock price when USC student Jake Freeman, who achieved overnight fame after profiting some $110 million on Bed Bath & Beyond's (BBBY) meme stock surge, said he was working in tandem with his uncle to build a position in MNMD shares. His uncle, Dr. Scott Freeman, was one of the founders of a company that was acquired a decade ago by MindMed and then became the latter's chief medical officer for a year. The elder Freeman said he thought the company should push stronger for a stage 3 trial with the Food & Drug Administration (FDA).

"The initiation of our Phase 2b clinical trial, the largest well-controlled clinical trial of LSD ever conducted, represents a major milestone for MindMed and for the many patients suffering from GAD," said Robert Barrow, CEO of MindMed.

"This exciting next step in the advancement of LSD builds on the positive topline data presented by our partners at University Hospital Basel in May 2022, which demonstrated the rapid, durable, and statistically significant effects of LSD and its potential to safely mitigate symptoms of anxiety and depression. The results of our Phase 2b trial will guide the dose selection and development strategy for our pivotal Phase 3 clinical trials, as we continue our efforts to bring a new potential treatment to the millions of people living with GAD."

MindMed stock forecast

MNMD stock gained 9.1% on Wednesday after completing a quick swing high that began last Thursday. That session saw a 36% gain followed by a -17% loss on Friday. Earlier this week MNMD appears to have found support around $0.77. Another gyration could send MNMD back to Thursday's resistance zone between $1.19 and $133.

Last week's swing high demonstrated the ability to overtake early June's recent swing high, but the rapid sell-off may have scared away a large swath of penny stock traders. One good sign is that MindMed stock remains above the 9-day moving average, so this rally may not have given up yet.

MNMD stock frenzy continues on LSD drug approval

MNMD daily chart

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended content

Editors’ Picks

EUR/USD bounces toward 1.0450 amid risk recovery

EUR/USD bounces toward 1.0450 amid risk recovery

EUR/USD is bouncing back toward 1.0450 in European trading on Wednesday, erasing losses induced by US President Trump tariff threats. Trump warned that tariffs are coming on the European Union. A recovery in risk sentiment drags the US Dollar lower, underpinning the pair. 

EUR/USD News
GBP/USD recover to 1.2350 on fresh US Dollar weakness

GBP/USD recover to 1.2350 on fresh US Dollar weakness

GBP/USD has regained lost momentum and hovers near 1.2350 in the European session on Wednesday. The pair draws support from a renewed US Dollar selling as risk sentiment improves despite US President Trump's tariff threats. 

GBP/USD News
Gold price stands firm near multi-month peak; seems poised to climb further

Gold price stands firm near multi-month peak; seems poised to climb further

Gold price sticks to positive bias for the third successive day on Wednesday and trades near its highest level since November 1 during the first half of the European session. The uncertainty around US President Donald Trump's trade policies turns out to be a key factor that continues to drive haven flows towards the precious metal.

Gold News
World Liberty Financial adds $47 million of ETH and wBTC each to celebrate Trump’s inauguration

World Liberty Financial adds $47 million of ETH and wBTC each to celebrate Trump’s inauguration

Donald Trump-backed DeFi platform World Liberty Financial (WLFI) added $47 million of wrapped Bitcoin (wBTC) and Ethereum (ETH) each to celebrate Trump’s inauguration as the 47th President of the United States on Monday.

Read more
Prepare for huge US trade changes as Trump goes America first

Prepare for huge US trade changes as Trump goes America first

You can be sure that big changes are coming as far as US trade is concerned, even if we didn't get any new tariffs on President Trump's first day in office. A comprehensive investigation into US trade relationships was initiated via a memorandum. China, Canada, and Mexico are clearly in the immediate firing line. 

Read more
Trusted Broker Reviews for Smarter Trading

Trusted Broker Reviews for Smarter Trading

VERIFIED Discover in-depth reviews of reliable brokers. Compare features like spreads, leverage, and platforms. Find the perfect fit for your trading style, from CFDs to Forex pairs like EUR/USD and Gold.

Read More

Forex MAJORS

Cryptocurrencies

Signatures