MindMed raises US$225m for psychedelic antidepressant
Mind Medicine secured an upsized US$225m late on Wednesday to fund an upcoming Phase III trial exploring the potential of its psychedelic antidepressant.
Jefferies, Leerink Partners and Evercore priced 18.4m shares at a US$12.25 fixed price, a 5.1% discount to the previous closing price of US$12.91.
The banks generated enough demand to support an increase from the US$200m targeted at launch. That demand carried into open trading, as shares of the psychedelic biotech closed on Thursday at US$13.39, 9.3% above issue and 3.7% for the day.
MindMed more than doubled its cash reserves from US$209.1m at the end of September, giving it enough to fund two upcoming Phase III trials on its lead drug.
In June 2024, the biotech presented Phase IIb trial results to the FDA showing real potential for its lead drug, an LSD derivative, as an antidepressant.
A Phase III trial in patients with generalised anxiety disorder is underway with a second Phase III trial in patients with major depression beginning next year.
If successful, MindMed could become the first biotech to have a psychedelic drug approved by the FDA for therapeutic use, even though LSD use is illegal in all 50 US states and on the federal level.