Hours after psychedelic leader Compass Pathways (NASDAQ:CMPS) announced Phase IIb results from the largest modern study on a psychedelic substance, the stocks of most psychedelic companies holistically took a nosedive despite generally positive results.
Peter Theil-backed Compass published data revealing that a strong dose of its Comp360 medication (a psiloCybin (NEO:CYBN)-derivative in a crystalline form) helped reduce depression in patients suffering from the treatment-resistant mental health issue.
While overall positive, results indicated that 179 of the 233 participants in the trial experienced treatment-emergent side effects. Compass, however, said that except for 12 patients, the rest experienced mild adverse events like headache, nausea, fatigue, and insomnia.
Still, the news generated mixed feelings in investors and drove the stocks of the London-based biotech company down more than 22% when the results were published in early November, and they have been trading low ever since.