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Here’s a bit of trivia for you: MindMed (NASDAQ:MNMD) is only the second developer of psychedelic drugs to get listed on a major U.S. stock exchange. Hence, it was a signal event when MNMD stock debuted on the Nasdaq Exchange in April.

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It might strike you as speculative to invest in a psychedelic medicine company. And I’ll grant you that there is a certain amount of risk involved with this particular industry.

On the other hand, there are signs of reform and possible decriminalization. For instance, the citizens of Oregon and the District of Columbia have voted to legalize specific uses of psilocybin, the primary active ingredient in “magic mushrooms.”

And now that the company’s stock has graduated from the over-the-counter market to the Nasdaq — and in light of some encouraging news about the company’s financial footing — it may be time to consider an investment in MindMed.

MNMD Stock at a Glance

Prior to the Nasdaq uplisting on April 27, MindMed’s shares traded on the OTCQB market as MMEDF stock.

As recently as September 2020, the stock was trading at around 34 cents apiece. In hindsight, we can say that this was quite a bargain.

Since that time, there have been several attempts to push the stock above the key $4 level and keep it there. This occurred in December, and then again in February of this year.

There was a third attempt at a bull run in late April as MMEDF stock was about to be converted into MNMD stock. Apparently, the trading community was excited about this event.

Unfortunately, the share price declined by 29% during the stock’s first day of trading on the Nasdaq. However, MindMed co-founder and CEO JR Rahn didn’t seem fazed by this inauspicious debut.

“We’re not going to be dictated by the day-to-day fluctuations or hour-by-hour fluctuations of our stock. We have 180,000 shareholders. A lot of them are very mission driven,” Rahn declared. I’d say that’s a good attitude for the CEO, as well as for the long-term stockholders.

Targeting Pain with Psychedelics

Psilocybin, LSD and other psychedelics have been demonized and kept largely illegal for many years, particularly in the United States.

At least in part, this could be because they gained a reputation for being “party drugs” and for being part of the counterculture movement of the 1960’s and 1970’s.

In the 2020’s, however, these drugs are being explored for their potential to heal and to alleviate pain.

Reportedly, MindMed is leading the way with Project Angie, a program designed to advance the development of psychedelics, including LSD, to treat pain conditions.

Project Angie could be quite lucrative for MindMed as IQVIA expects the global market for analgesics to exceed $31 billion by 2030.

Presumably, we’re not talking about just alleviating a simple headache here. Through Project Angie, MindMed is evaluating an indication for medical psychedelics “in a common, often debilitating, chronic pain syndrome.”

Cash to Advance the Pipeline

Only time will tell whether Project Angie achieves its objectives. However, it’s exciting to consider new pathways to relief for debilitating pain conditions.

At the same time, Project Angie won’t be feasible unless MindMed is sufficiently capitalized. Fortunately, recently released data suggests that the company is on firm financial footing.

In a fresh press release, MindMed revealed its fiscal highlights for 2021’s first quarter.

I’m glad to report that the company maintained $201 million in total assets as of March 31. Moreover, that total included $160 million in cash.

This was likely achieved, at least in part, due to the closing of an upsized financing of 92 million CAD ($73 million in U.S. dollars), along with a private placement of 19.5 million CAD ($15.4 million in U.S. dollars).

The Takeaway

MindMed’s recently released financial data is definitely encouraging. The most important point is that the company has access to capital to advance its potentially groundbreaking clinical research.

And with that, new, science-backed products could become available. Perhaps, with MindMed’s help, the psychedelic medicine market can shake off its decades-long bad reputation.

On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.

The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

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