Aug 16, 2022

MindMed 2Q22 Update: Shares Jump On Key Catalysts

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NEW YORK, Aug. 11, 2022 /PRNewswire/ -- Mind Medicine (MindMed) Inc. (NASDAQ: MNMD), (NEO: MMED), (the "Company" or "MindMed"), a clinical stage biopharmaceutical company developing novel products to treat brain health disorders, reported (8/11/22) its financial results for the quarter ended June 30, 2022. MNMD stock jumped 20% from Monday (8/8/22) on Friday's news.

2Q22 Highlights

  • MM-120 (LSD) Phase 2b dose-optimization trial in patients with General Anxiety Disorder underway with first patient dosing expected in Q3 2022
  • Advanced IND-enabling studies for MM-402 (MDMA) with the Phase 1 investigator-initiated pharmacokinetic/pharmacodynamic trial on track to initiate in Q3 2022
  • Appointed Drs. Suzanne Bruhn and Roger Crystal as independent members of the Board of Directors
  • Strengthened leadership team with the appointment of Schond L. Greenway as Chief Financial Officer
  • Healthy cash runway through key clinical readouts in 2023 and into 2024
  • Developed "Value Enhancement Plan" with two sophisticated shareholders to refocus on MM-120 and MM-402 drug asset development

Mindmed's financial performance

Mindmed's stock jumped 20% on Friday's shareholder update and the announcement of a "Value Enhancement Plan" by two of Mindmed's large shareholders (see below). Compared to last year's second quarter, the company's G&A costs declined by almost $30M to $7.6M (for the 3 months ended June 30, 2022), a strong indicator that Mindmed's management understands the tough market environment and isn't counting on raising significant capital anytime soon. Research and development increased by ~$1M to $9.3M. Overall, Mindmed's net loss decreased by ~$28M. The company finds itself in a healthy financial position with ~$105M cash in the bank and only ~$10M in liabilities.

Upcoming catalysts

Value Enhancement Plan

Two of Mindmed's large shareholders, Dr. Scott Freeman (5.6% of MindMed's shares outstanding) and Chad Boulanger (4.51% of MindMed's outstanding shares), sent a letter to Mindmed's Board calling on the Board to adopt a new strategic plan proposed by Dr. Freeman's investment company (FMC) including: refocusing on its core drugs, cutting cash burn, and terminating MindMed's at-the-money equity offering. FCM believes MindMed has underperformed—operationally, financially, and strategically—as a direct result of management's lack of focus on its core drugs: MM-110 (18-MC) and MM-120 (LSD). FCM contends that MindMed can bring MM-120 to market in four years rather than seven to eight years, by re-classifying MindMed's Phase IIb study on MM-120 to a Phase III study. FCM also proposes that the Company reduce costs from forty-five million dollars per year to under twenty-five million dollars and that the unnecessary and dilutive at-the-money offering should be eliminated. By executing these proposals, FCM believes that MindMed can unlock significant long-term value for MindMed's shareholders.

The full text of the letter is available and can be downloaded at

FCM's large economic stake in MindMed reflects its convictions regarding MindMed's potential and gives it a strong interest in the success of MindMed.

MM-120 (LSD)

  • The Company remains on track for patient dosing in the Phase 2b dose-optimization study of MM-120 for the treatment of GAD, with topline results expected in late 2023.
  • Topline results in 46 patients with clinically significant anxiety demonstrated the significant, rapid, durable, and beneficial effects of LSD and its potential to safely mitigate symptoms of anxiety and depressions.

MM-402 (MDMA)

  • IND-enabling studies are currently ongoing and initiation of a Phase 1 clinical trial of MM-402 is planned in 2023.

MM-110 (18-MC)

  • In May 2022, the Company reported positive topline results from the Phase 1 placebo-controlled trial designed to assess the safety, tolerability, pharmacokinetics and neurocognitive effects of MM-110 in 108 healthy volunteers. The Company intends to continue further clinical development for our MM-110 program through the pursuit of non-dilutive sources of capital and/or collaborations with third parties.


Author owns MindMed shares at the time of publishing and may choose to buy or sell at any time without notice.


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