The Biotech sector (as represented by the IBB ETF) is moving higher after holding support at a key technical level near $128 on the IBB exchange-traded fund. The confluence of the 50/200-day SMAs adds weight to the support at this level that also marked the end of a biotech sector correction at the end of December 2022.
PharmalA (MDMA), a biotech company focusing on R&D and manufacturing of MDXX class molecules, including MDMA, is in the strongest uptrend of any Canadian micro-cap biotech today. The company recently inked a 50:50 JV with Vitura Health to supply MDMA and psilocybin products to authorized practitioners. Named Cortexa, the JV will leverage the manufacturing capabilities of Pharmala with the distribution networks of Vitura Health, who currently operates primarily in the cannabis space. Pharmala was also selected as the exclusive manufacturing partner for the Clinical Psychedelic Lab at Monash University’s upcoming Phase 2 Clinical Trial.
The MindMed (MNMD) daily chart exhibits a cup & handle pattern within the context of a major multi-month bottoming process. A confirmed breakout above $4.00 enters a large 'gap' area in the chart that will target a further 30%-40% of near-term upside. It will be important for support at $3.50 to hold.
MindMed stock gained 4.5% after they reported positive findings in trial of LSD as treatment for major depressive disorder. The company recently sent a letter to shareholders highlighting their momentum and value-enhancing strategy, highlighting their two successful Phase 2 studies of their proprietary LSD analog, MM-120, as treatments for general anxiety disorder and ADHD. The June 15th annual meeting has the potential to deliver a positive share price catalyst if some of the activist shareholder plans are implemented. https://mindmed.zone/activist-letters.
The Board stated that:
"We are also well capitalized, with cash on hand of $142.1 million as of the end of 2022 – sufficient to fund the Company’s operations beyond our key development milestones in 2023 and into the first half of 2025."
MindMed will be presenting at two upcoming conferences this month:
H.C. Wainwright BioConnect Conference
RBC Capital Markets Global Healthcare Conference
Audio webcasts and replays of available presentations will be accessible on MindMed’s Investor Resources website for up to 90 days following each event.
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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