Psychedelic Stocks Trip Up After FDA Advisors Reject MDMA For PTSD Treatment
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 05 2024
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Source: Business Insider
- FDA Panel Rejects MDMA for PTSD Treatment: A panel of FDA advisors rejected the use of MDMA in treating post-traumatic stress disorder (PTSD) due to insufficient evidence that its benefits outweigh the risks.
- Impact on Psychedelic Stocks: Most stocks in the psychedelic space experienced a decline following the ruling, with companies like Cybin Inc, Mind Medicine, and ATAI Life Sciences trading lower.
- Reasons for Rejection: Panel members cited concerns about the effectiveness of MDMA combined with talk therapy for PTSD treatment and potential risks associated with using the drug for mental health issues.
- Market Response: The AdvisorShares Psychedelics ETF also traded lower after the ruling, reflecting a negative sentiment towards the progress of approving and regulating psychedelic treatments.
- Future Outlook: While the FDA is not bound by the advisory board's decision, the rejection was viewed as a setback for the advancement of psychedelic-based treatments despite arguments for their efficacy over existing mental health treatments.
Analyst Views on CYBN
Wall Street analysts forecast CYBN stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CYBN is 45.00 USD with a low forecast of 30.00 USD and a high forecast of 55.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
6 Analyst Rating
6 Buy
0 Hold
0 Sell
Strong Buy
Current: 8.280
Low
30.00
Averages
45.00
High
55.00
Current: 8.280
Low
30.00
Averages
45.00
High
55.00
About CYBN
Cybin Inc. is a Canada-based clinical-stage biopharmaceutical company. The Company creates psychedelic-based therapeutics to address the unmet need for treatment options for people who suffer from mental health conditions. Its N, N-dimethyltryptamine (DMT) and dDMT programs create a dataset of systematic research on these psychedelic molecules. The Company is developing CYB003, a proprietary deuterated psilocybin analog for the treatment of major depressive disorder, and CYB004, a proprietary deuterated dDMT molecule for generalized anxiety disorder and has a research pipeline of investigational psychedelic-based compounds. CYB003 moves to Phase III and CYB004 moves to Phase II.CYB005 is in Preclinical stage. It has an intellectual property portfolio in the psychedelic drug development sector with over 80 patents granted and over 230 patent applications pending. The Company operates in Canada, the United States, the United Kingdom, the Netherlands, and Ireland.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
