Compass Pathways (CMPS): A High-Risk, High-Reward Play in Psychedelic Therapy


I’m looking into Compass Pathways (NASDAQ: CMPS), a biotech company focused on developing psilocybin-based therapies for treatment-resistant depression (TRD). They're currently in Phase 3 clinical trials for their lead product, COMP360. Here’s a quick rundown:

  • Market Potential: TRD affects about 84 million people globally. If COMP360 gets approved and captures even a small market share, the revenue potential could be massive.
  • Current Valuation: The stock is trading around $7. Analysts suggest that with a successful Phase 3, the stock could 5x, given the novelty and demand for effective TRD treatments.
  • Risks: This is definitely a speculative bet. If the trials fail, the stock could tank. But with a 50% estimated success rate, the risk/reward seems intriguing.

What are your thoughts? Is this worth the risk, or too much uncertainty? Curious to hear the community’s take on whether CMPS is a hidden gem or a potential trap.


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