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MindMed Stock Skyrockets 94% Year to Date: What's Driving It?

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Mind Medicine (MindMed) (MNMD - Free Report) is developing its lead pipeline candidate, MM120, an orally disintegrating tablet (ODT) and a pharmaceutically optimized form of lysergide D-tartrate (LSD), for the treatment of generalized anxiety disorder (GAD) and major depressive disorder (MDD).

2024 Turns Out to Be a Transformational Year for MindMed

2024 was a transformational year for the company when it executed many important milestones, one of which was initiating the 52-week Voyage phase III study on MM120 ODT in GAD earlier this month. Top-line data from a 12-week study is anticipated in the first half of 2026.

In the year, MindMed also raised approximately $250 million through two equity financings. The company also obtained a newly issued patent covering MM120 ODT and extended intellectual property protection through 2041.

All these factors have led MindMed’s stock to rise 93.5% year to date against a decrease of 13.7% for the industry.

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MNMD’s MM120 ODT Can be a Novel Option for GAD & MDD

Earlier this year, MindMed presented impressive data from the phase IIb study on MM120 ODT. The data demonstrated efficacy that far exceeded the current standard of care and a favorable tolerability profile. The FDA has also granted a breakthrough therapy designation to MM120 for treating GAD, a debilitating mental health condition where there is an urgent need for transformational innovation with the last new drug approval occurring in 2007.

Voyage is the first of the two-phase III studies to be conducted on MM120 ODT in GAD. The second phase III study called Panorama is expected to be initiated in the first half of 2025.

Another phase III study of MM120 ODT in major depressive disorder called Emerge is expected to be initiated in the first half of 2025 with an anticipated top-line readout from the 12-week double-blinded period (Part A) in the second half of 2026.

MindMed estimates that GAD and MDD together affect approximately 51 million adults in the United States. These indications have seen little innovation in the past quarter century and represent a significant unmet medical need. The company believes that MM120 ODT represents a novel and highly differentiated treatment option for people living with GAD and MDD.

Positive Estimate Revisions

In the past 60 days, 2024 loss estimates for MNMD have improved from $1.60 per share to $1.57 per share. For 2025, loss estimates have improved from $1.36 per share to 67 cents per share in the past 60 days.

MNMD’s Zacks Rank & Stocks to Consider

MindMed currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks from the biotech sector are Castle Biosciences, Inc. (CSTL - Free Report) , CytomX Therapeutics (CTMX - Free Report) and Spero Therapeutics (SPRO - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

In the past 60 days, 2024 estimates for Castle Biosciences have improved from a loss of 59 cents per share to earnings of 34 cents per share. Loss per share estimates for 2025 have narrowed from $2.15 to $1.84 during the same time. Year to date, shares of CSTL have surged 27.3%.

CSTL’s earnings beat estimates in each of the trailing four quarters, the average surprise being 172.7%.

In the past 60 days, estimates for CytomX Therapeutics’ 2024 loss per share have narrowed from 29 cents to 5 cents. Loss per share estimates for 2025 have narrowed from 56 cents to 35 cents during the same time. Year to date, shares of CTMX have declined 29.7%.

CTMX’s earnings beat estimates in two of the trailing four quarters while missing the same on the remaining two occasions, the average surprise being 115.7%.

In the past 60 days, estimates for Spero Therapeutics’ 2024 loss per share have narrowed from $1.59 to $1.29. During the same time, estimates for 2025 loss per share have narrowed from $1.54 to 79 cents. Year to date, shares of SPRO have lost 37.2%.

SPRO’s earnings beat estimates in two of the trailing four quarters and missed the mark on the other two occasions, delivering an average surprise of 94.4%.

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