The newly listed Nasdaq stock rose 40% before pulling back some.
The initial public offering of German biotechnology was $ 15 per share on Thursday night, the upper limit of expectations. The company, which aims to manufacture psychedelic drugs to treat mental health disorders, has raised $ 225 million at a valuation of $ 2.3 billion.
Atai is the third psychedelic biotechnology published in the United States. MindMed, Published on Nasdaq in April, supported by Founders Fund Compass route, Was published in September. By the end of Thursday, Compass Pathways had increased 26% since its debut, and Mind Med, who had just announced his resignation as CEO, had declined about 19% since the IPO.
Biotechnology uses psychedelic mushroom compounds psilocybin, LSD, and MDMA derivatives to develop treatments for addiction and psychiatric disorders such as depression, anxiety, schizophrenia, and traumatic brain damage. doing. Three years after its founding, Atai Life Sciences has 10 treatment programs in its pipeline, each at various stages of clinical trials.
Christian Angermeier, founder and chairman of Attai, is on CNBC “Squawk Box” On Friday, “The world we are building is a bad place for our brains, so we have mental health problems. But to end the mental health crisis, we have some in our portfolio. I think there is an actual shot. “
Investor interest in psychedelic treatments is growing with increasing interest in these treatments from the medical community.
Johns Hopkins University, Yale University, University of California, Berkeley, and Ikarn Medical College are one of the centers studying psychedelics and psychology. Recent research Established MDMA’s promise in the treatment of post-traumatic stress disorder, Effectiveness of psilocybin, A hallucinogen found in psychedelic mushrooms, has only increased interest in space in the treatment of drug-resistant depression.
Angermeier was an early investor in Compass Pathways, and his own company, Atai, serves as a holding company for various psychedelic start-ups seeking alternative treatments for mental illness. He told CNBC on Friday that New Age biotechnology is built on centuries-old practices in shamanistic culture and religion.
Currently, psychedelic mushrooms, MDMA (commonly known as Molly or Ecstasy), and LSD are subject to federal restrictions worldwide.But last year’s Oregon Became the first US state Legalize psychedelics for therapeutic use. Residents of Washington, DC also recently voted in favor of decriminalizing the use of psychedelics for medicinal purposes.
Atai Life Sciences for IPO on Nasdaq, June 18, 2021.
Angermeier believes that federal approval for the therapeutic use of these drugs can make a big difference to people suffering from mental illness. “They are very powerful drugs, but they should be taken under supervision …. I stumble while sitting with the therapist.”
Atai Life Sciences is backed by billionaire investor Thiel, Mike Novogratz’s Galaxy Investments, and Angermayer’s own Apeiron Investment Group.
According to venture capital tracker CB Insights, psychedelic VC trading has increased significantly over the last three years. In 2018 and 2019, venture capital invested in psychedelic start-ups was less than $ 100 million, compared to $ 346 million in 2020. By April 2021, VC had already invested $ 329 million in the industry.
Investment fund Palo Santo said it has acquired a notable stake in Attai’s IPO. “There is an urgent need to work on our broken mental health care system,” Palo Santo co-founder Daniel Goldberg said in a statement. “We believe that psychedelics will expand treatment options and transform outdated systems.”
Attai Submitted S-1 filing When submitted to the Securities and Exchange Commission in April, it was shown that a total of $ 362.3 million had been raised by private investors at that time.
Calling itself a drug development platform, the company was founded to acquire, culture and develop psychedelics and other medicines that can be used to treat depression, anxiety, addiction and other mental health conditions. ..
With approximately 50 staff in offices in Berlin, New York and San Diego, Atai is currently partnering with 14 companies focused on drug development and other technologies.
Atai helps scientists raise money, work with regulators, and conduct clinical trials in exchange for a majority stake in drugs and technologies under development. To date, none of Atai’s drugs have been officially approved by regulators.
Thiel invested $ 11.9 million in Atai in November through venture capital firm Thiel Capital.
“A great virtue of Atai is to take seriously the mental illness that we should have had all the illnesses all the time,” says co-founder Thiel. Palantir And PayPal, Said in a statement shared with CNBC at the time. “The company’s most valuable asset is its sense of urgency.”
Peter Thiel-backed psychedelic start-up stock makes Wall Street debut
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