Psychedelic drug developers fall after Usona submits depressive drug application

COMPASS Pathways

Mon 20:01

** Shares of Compass Pathways CMPS.O fall 29% to $8.22 in afternoon trading
** Psychedelic stocks slide after nonprofit organization Usona Institute submits a marketing application for psilocybin in major depressive disorder, Jefferies says
** Brokerage says filing could support a late-2026 or early-2027 approval and position Usona as the first FDA-approved psychedelic therapy
** Notes Usona and Compass' COMP360 are eligible for expedited review under the CNPV program, putting the two psilocybin therapies on similar review timelines
** Jefferies says Usona's application may raise questions around first-mover advantages in pricing and regulation, but adds listed peers have stronger clinical datasets and greater commercial resources
** Adds it remains unclear whether Usona plans to commercialize the treatment
** Even if Usona were to launch, CMPS would plan to protect its intellectual property "aggressively" anyway, Jefferies adds
** Definium Therapeutics' shares DFTX.O down 10.5%, Helus Pharma's shares HELP.NLB, HELP.O fall 17% while GH Research GHRS.O fall 1.8% 
** Brokerage sees limited impact on DFTX and HELP, given their programs are based on different psychedelic compounds


 (Reporting by Siddhi Mahatole)
 ((siddhi.mahatole@thomsonreuters.com))