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AbbVie Inc. (ABBV $217.61)
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Cybin Inc Com (CX $0.14)
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COMPASS Pathways Plc (CMPS $5.14)
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Mind Medicine (MindMed) Inc. (MNMD $9.55)
Q: What is your opinion of ABBV buying an experimental drug derived in the psychedelic space from private company Gilgamesh for 1.2B?. Do you think with some of these psychedelic companies now getting phase 2 and phase 3 trials wrapped up on their potential drug offerings that the psychedelic market might get some legs in the near future as the big pharma companies look for the next big thing. ? With these being very spec who would be you picks in the space for fun money?
5i Research Answer:
We have some other non-related comments on ABBV posted this morning. The psychedlic space had its initial frenzy and speculation, and then reality and losses set in. It likely makes sense for big pharma to start picking up the pieces, with a longer term view and far more capital to allocate. The ABBV looks fine overall, but with its $366B market cap it is a bet that is less than 1% of its value, so not hugely material. The sector has seen some renewed interest, but we would still consider it largely still too early to speculate. CMPS would be our preferred speculative stock for those inclined, but this is not to be meant as a currrent endorsement by us.