Dec 15, 2023

Psychedelic Breakthrough: Transforming Minds and Markets with Phase 2 Triumphs in Mental Health

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In recent groundbreaking developments, two novel psychedelic-based treatments have shown promising results in Phase 2 clinical trials, heralding a potential paradigm shift in the treatment of major depressive disorder (MDD) and generalized anxiety disorder (GAD). Cybin Inc. (NYSE American:CYBN) (NEO:CYBN) and MindMed (Nasdaq: MNMD) (NEO: MMED) (DE: MMQ) two pioneering biopharmaceutical companies, have announced positive topline data for their respective drugs, CYB003 and MM-120, which could revolutionize mental healthcare.

Cybin Inc.’s CYB003 for MDD

Cybin Inc. has reported significant strides in treating MDD with its proprietary deuterated psilocybin analog, CYB003. In a recent Phase 2 trial, CYB003 demonstrated a rapid, robust, and clinically significant reduction in depression symptoms, marking a substantial advance over existing treatments. The primary efficacy endpoint was achieved with an impressive mean 14-point difference in the Montgomery-Asberg Depression Rating Scale (MADRS) score reduction from baseline, compared to placebo at three weeks. Remarkably, 79% of patients were in remission from depression after just two doses of CYB003. The drug also showcased a favorable safety and tolerability profile, with no treatment-related serious adverse events.

MindMed’s MM-120 for GAD

Simultaneously, Mind Medicine (MindMed) Inc. has made significant headway with MM-120, a lysergide D-tartrate, in treating GAD. The Phase 2b trial met its primary endpoint, with MM-120 demonstrating statistically significant and clinically meaningful improvements on the Hamilton Anxiety rating scale (HAM-A). The 100 µg dose showed a 7.6-point reduction compared to placebo at Week 4, with a rapid and durable clinical activity beginning on Day 2 and continuing through Week 4. The drug was well tolerated, with mostly transient mild-to-moderate adverse events.

The birth of the psychedelic revolution: Improving human lives by harnessing Mother Nature through Modern Science. 

At Medical Gold, our main theme for 2024 is that we are at an important juncture in the psychedelic revolution. The medical psychedelics sector of the public equity market has matured to the point that it is beginning to receive attention from large pharma companies, and institutional investors. Meanwhile, valuations have rarely been lower than they are today. Suffice to say, the opportunity for investors has never been greater. 


MindMed shares have been volatile after releasing excellent phase 2b data from MM-120 in GAD this morning. However, buyers are now clearly overpowering profit takers, with MNMD +13.3% on enormous trading volume.

CYBN has seen quite a bit of selling on the news since the latest phase 2b data readout from CYB003 in MDD at the end of November. However, CYBN appears to be settling near support at $.39 in recent days. We are still expecting more trial data from CYBN's CYB004 and SPL026 phase 1 trials over the next few weeks. CYBN is well funded after closing a US$30 million financing at $.45 on November 14th.


The positive outcomes of CYB003 and MM-120 in Phase 2 trials mark a momentous step in the journey toward innovative and effective treatments for mental health disorders. With their novel mechanisms and promising efficacy profiles, these psychedelic-based therapies may soon offer new hope to millions suffering from MDD and GAD, reshaping the landscape of mental healthcare and potentially attracting significant investment in the medical psychedelics sector. 

The success of CYB003 and MM-120 in Phase 2 trials could catalyze increased investor interest in Cybin Inc. and Mind Medicine (MindMed) Inc. Biotech has already experienced a large move on news that the Fed is pivoting to an easing cycle (the XBI shot up 6% from Wednesday). Medical psychedelics are poised for a comeback, and CYBN and MNMD are at the forefront of this movement.


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

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


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