Shares of the Mind Medicine (MindMed) Inc. (MNMD) stock were gloomy in the premarket today on December 21, 2021. MNMD stock price saw a downtrend of 11.04% to drop at $1.45 a share at the time of this writing. The stock was also red in the previous trade and went down by 5.23% at closing. Let’s take a closer look at MNMD stock to understand the bearish sentiment.
What’s Happening?
Recently the company announced that the U.S. Food and Drug Administration (FDA) has placed a clinical hold on its IND submission concerning the starting of Phase 2b trial of lysergic acid diethylamide (LSD). The LSD is intended for patients who are suffering from generalized anxiety disorder (GAD). The company will provide additional details related to the decision of the FDA within 30 days. The investors did not like the news that led to the decline in the per-share price of the MNMD stock. On the other hand, the management of the company is confident in LSD and hopes that it will satisfy all the outstanding concerns of the FDA related to LSD as soon as possible.
Previous News of MNMD stock:
A few days ago on December 17, 2021, Mind Medicine announced that it has started the Phase 2a proof-of-concept (POC) trial of lysergic acid diethylamide (LSD). The trial is intended for adult patients who are suffering from deficit hyperactivity disorder (ADHD). The company has activated the first site and expects to enroll the patients very soon. The purpose of the trial is to observe the effect of the repeated low doses of LSD. Maastricht University in the Netherlands and University Hospital Basel in Switzerland will collaborate in this study.
New Appointments by MNMD stock:
About a week ago, MNMD announced the appointment of Robert Barrow as the Board Member and Chief Executive officer of the company. Mr. Barrow was previously the Chief Development Officer and interim Chief Executive Officer of Mind Medicine.
Mr. Perry Dellelce resigned from his role as Director and Chairman of Mind Medicine’s board of directors. Ms. Carol Vallone replaced him as the Chairman of the board of directors. Mr. Andreas Krebs is now serving as the Vice-Chairman of the board of directors of the company.
Wrap Up:
The clinical hold of Phase 2b trial of lysergic acid diethylamide (LSD) by the FDA is the obvious reason for the falling MNMD stock. The management is optimistic that it will clear all the concerns of the FDA soon regarding this trial.
