S The Psychedelic & Marijuana Drug Stocks Index Dropped -30% In January

This article updates the performances of 16 clinical-stage psychedelic and marijuana drug companies researching the treatment of a wide variety of mental illnesses.

Forty (40) companies are basing their research on the use of THC marijuana while 60 others (see here) are basing their research on the use of one or more of 10 different psychedelic substances (read 10 Psychedelic Substances And The 36 Companies Researching Them).

The munKNEE Pure-Play Marijuana & Psychedelic Compounds-Based Drug Stocks Index consists of 16 marijuana and psychedelic drug stocks that have market capitalizations in excess of $35M. Five (5) of them are in the Pure-Play Marijuana Drug Stocks Index sub-category and 11 are in the Pure-Play Psychedelic Compounds-Based Drug Stocks Index.

The constituents in both our Pure-Play Marijuana Drug Stocks Index and our Pure-Play Psychedelic Compounds-Based Drug Stocks Index have hyperlinks to 4 areas of additional information which are imperative for any individual considering investing in this sector:

  1. The company name is hyperlinked to its website to provide you with a description of the company and an analysis of its stock.
  2. The trading symbol is hyperlinked to additional financial data and commentary on the company (where available).
  3. The percentage increase YTD is hyperlinked to a chart of the company's stock performance YTD.
  4. The "financial distress" percentage is sourced from macroaxis.com.

The Pure-Play Marijuana Drug Stocks Index

The 5 marijuana-based clinical-stage stocks went down, -11.0% on average, in January but remain UP 35%, on average, from their 52-week lows. Their performances are presented below in descending order:

  1. Allied Corp. (ALID)Market Cap. of $161M; UP +0.5% YTD
    • The company is researching, creating, and producing targeted cannabinoid health solutions to help people suffering from:
      • Post-Traumatic Stress Disorder (PTSD), anxiety, and depression in addition to growing and processing the cannabis plant itself and developing a line of therapeutic CBD-based products.
    • has about a 24% chance of experiencing some form of financial distress in the next two years of operation
  2. Tetra Bio-Pharma (TBPMF)Market Cap. of $39M; DOWN -11.1% YTD
    • The Company is focused on developing cannabinoid-derived medicines for the treatment of:
      • inflammation (Cytokine Release Syndrome),
      • cancer pain (Qixleef and Caumz which are in Phase 2),
      • ophthalmology (Proliferative Vitreoretinopathy and Uveitis which has an Orphan Drug Designation), and
      • oncology (Cancer Cachexia which is in Phase 2 and  Hepatocellular Carcinoma which has an Orphan Drug Designation).
    • According to macroaxis TBPMF has about a 33% probability of financial distress in the next few years of operation  
  3. Zynerba Pharmaceuticals (ZYNE)Market Cap. of $37M; DOWN  -13.2% YTD
    • The company hopes to provide new treatment options for patients battling certain rare neuro-psychiatric diseases (those affecting fewer than 200K patients in the U.S.) and near-rare neuropsychiatric conditions (i.e. those affecting fewer than one million patients).
    • Its clinical pipeline consists of research into:
      • Fragile X Syndrome;
      • 22q Deletion Syndrome;
      • Autism Spectrum Disorder;
      • a heterogeneous group of rare and ultra-rare epilepsies known as Developmental & Epileptic Encephalopathies (DEE) and
      • Autoimmune conditions such as Crohn's Disease, IBS, and Eczema.
    •  has 53% odds of going through some form of financial distress in the next two years
  4. Revive Therapeutics (RVVTF)Market Cap. of $80M; DOWN -14.8% YTD
    • The company has been granted two Orphan Drug Designations by the FDA for the use of CBD:
      • in the treatment of: Autoimmune Hepatitis, and
      • in the prevention of Ischemia and Reperfusion Injury resulting from solid organ transplantation, such as liver, kidney, heart, and lungs.
    • has less than a 3% chance of experiencing financial distress in the next few years
  5. Corbus Pharmaceuticals (CRBP)Market Cap. of $58M; DOWN -32.3% YTD
    • The company's lead product candidate, lenabasum, is a novel, synthetic oral endocannabinoid-mimetic drug designed to resolve chronic inflammation and fibrotic processes such as:
      • Dermatomyositis (in Phase 3) and
      • Systemic Lupus Erythematosus (in Phase 2).
    • has a +93% chance of experiencing financial distress in the next few years of operation

The Pure-Play Psychedelic Compounds-Based Drug Stocks Index

The 11 psychedelic compound-based clinical-stage stocks are divided into 2 groups based on their market capitalizations: $40M>$499.9M (Group 1) and $500M+ (Group 2). 

The 7 constituents in Group 1 went down, (-24.0%) in January, on average, and are now, on average, DOWN -0.3% from their previous 52-week lows. Their performances are presented below in descending order:

  1. Numinus (NUMIF): Market Cap. of $102M; UP +11.9% YTD 
    • provides clients with testing of controlled compounds such as LSD, ketamine, DMT, MDMA, mescaline, psilocybin and psilocin as well as conducting research of both MDMA and psilocybin to treat PTSD, depression, anxiety, and addiction.
    • has over a 28% chance of experiencing financial distress in the next few years of operation
  2. Red Light (TRUFF): Market Cap. of $42M; UP +9.1% YTD
    • plans to produce, market, and distribute a premium health and wellness brand of psilocybin truffles within the Netherlands.
    • has about a 28% chance of experiencing financial distress in the next few years of operation.
  3. Cybin (CYBN): Market Cap. of $165M; DOWN -14.2% YTD
    • focused on progressing psychedelic therapeutics by utilizing proprietary drug discovery platforms, innovative drug delivery systems, novel formulation approaches and treatment regimens for psychiatric disorders.
    • has over a 62% chance of experiencing financial distress in the next few years of operation.
  4. Awakn (AWKNF): Market Cap. of $46M; DOWN -22.9% YTD
    • engaged in researching and developing psychedelic drugs focuses to treat addiction as well as delivering psychedelic treatments for addiction in clinics in the UK and EU.
    • has a 28% chance of experiencing financial distress in the next 2 years of operation.
    • Read: Awakn Life Sciences: Wake Up To The Huge Potential
  5. Field Trip (FTRP): Market Cap. of $108M; DOWN -29.7%
    • focused on building centers for psychedelic therapies across North America and Europe.
    • has about a 43% chance of experiencing some form of financial distress in the next two years of operation.
  6. Small Pharma (DMTTF): Market Cap. of $62M; DOWN -32.0%
    • focused on developing N,N-dimethyltryptamine and a pipeline of novel patent-protected deuterium-enriched tryptamine compounds in combination with psychotherapy as potential rapid onset, sustained treatments for depression and other mental health disorders.
    • has over a 77% chance of experiencing some form of financial distress in the next two years of operation
  7. Seelos (SEEL): Market Cap. of $125M; DOWN -34.4%
    • focused on developing products that address significant unmet needs in the Central Nervous System disorders and other rare disorders.
    • has over a 77% chance of experiencing financial distress in the next few years of operation.

The 4 constituents with market caps above $400M (Group 2) went DOWN -32.8%, on average, in January and are now, on average, DOWN -2.8% from their previous 52-week lows. Their performances are presented below in descending order:

  1. Mind Medicine (MNMD): Market Cap. of $393M; DOWN -21.7% YTD
    • above 58% chance of experiencing financial distress in the next few years of operation.
  2. GH Resources (GHRS): Market Cap. of $894M; DOWN -32.2% YTD
    • about 54% chance of experiencing financial distress in the next two years of operation.
  3. Compass Pathways (CMPS): Market Cap. of $658M; DOWN -33.1% YTD
    • about 62% chance of experiencing financial distress in the next few years of operation.
  4. Atai (ATAI): Market Cap. of $843M; DOWN -35.3% YTD
    • above 56% chance of experiencing financial distress in the next few years of operation.

In Conclusion

The  munKNEE Pure-Play Marijuana & Psychedelic Compounds-Based Drug Stocks Index is DOWN -30.0% YTD and is now -0.4% below its previous 52-week low. Perhaps the sector has finally bottomed and it is time to take a position in one or two of the companies outlined above. Hopefully the above information will help you in making that decision.

 

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