Atai Life Sciences (NASDAQ: ATAI), a clinical-stage biopharmaceutical company whose objective is to transform how mental health conditions are treated, has increased its stake in Compass Pathways. Compass Pathways (NASDAQ: CMPS) is a mental health care company that is focused on improving the lives of patients with mental health disorders.
Atai, which is already the biggest shareholder of Compass Pathways, purchased more than 619,000 additional shares in Compass Pathways, increasing its stake in the company to 20.8%. The Peter Thiel-backed biopharmaceutical start-up bought each share at roughly $31 and paid a total of about $12 million. A source close to the companies recently revealed that Atai plans to increase its stake in the mental healthcare company to around 29% in the coming weeks.
In an interview, Atai Life Sciences chair and cofounder Christian Angermayer stated that he believed Compass Pathways was one of the most impactful and undervalued biotechnology stocks on the market. Compass Pathways listed on the NASDAQ stock exchange in September of last year and is currently valued at $1.4 billion. The company is planning to use psilocybin to treat depression. Psilocybin is the hallucinogenic compound found in magic mushrooms.
Atai Life Sciences debuted on the NASDAQ stock exchange in June of this year. The company’s current market cap is $1.7 billion. Atai was established to develop psychedelic drugs as well as other drugs that can be utilized in the treatment of addiction, anxiety, depression and other mental health disorders.
Interest in a number of psychedelics, including DMT, MDMA, psilocybin and LSD, has grown these last few years as more clinical studies find that the substances could help patients with various mental health conditions. For instance, a study conducted in Switzerland found that LSD-assisted psychotherapy could be used to reduce the anxiety linked to terminal illness. A separate trial carried out in the United States also found that MDMA-assisted psychotherapy was useful in the treatment of chronic treatment-resistant post-traumatic stress disorder.
During a prior interview, Angermayer stated that the treatments currently used in the management of mental health conditions weren’t sufficient, despite helping some individuals.
According to the World Health Organization, roughly one billion individuals across the globe suffer from mental health issues. Depression is said to be one of the primary causes of disability globally, with estimations showing that about 264 million individuals are affected by depression.
For those who aren’t responding to existing treatments, there is hope on the horizon as many companies, including Tryp Therapeutics Inc. (CSE: TRYP) (OTCQB: TRYPF), focus their energies upon developing psychedelic-based formulations that could revolutionize mental health care.
NOTE TO INVESTORS: The latest news and updates relating to Tryp Therapeutics Inc. (CSE: TRYP) (OTCQB: TRYPF) are available in the company’s newsroom at https://ibn.fm/TRYPF
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