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Can magic mushrooms treat depression? Biotech COMPASS Pathways prices upsized US IPO above the range at $17

September 18, 2020

COMPASS Pathways, a British Phase 2 biotech developing a psilocybin-based therapy for depression, raised $128 million by offering 7.5 million ADSs at $17, above the range of $14 to $16. The company offered 0.8 million more ADSs than anticipated. At pricing, the company raised 27% more in proceeds than expected.

COMPASS Pathways plans to list on the Nasdaq under the symbol CMPS. Cowen, Evercore ISI and Berenberg acted as lead managers on the deal.

The company is focusing on using its proprietary formulation of psilocybin, COMP360, in conjunction with psychological support as a way to help individuals who have treatment-resistant depression, or TRD, a subset of major depressive disorder, or MDD. COMPASS is currently evaluating COMP360 in conjunction with psychological support in a Phase 2b trial and plans to report data from this trial in late 2021. Classified as a Schedule I drug, psilocybin is considered a serotonergic hallucinogen and is an active ingredient in some species of mushrooms.