Prognosis
Compass Sinks After Depression Therapy Results Fuel Concerns
- Effects seen day after taking mushroom-like drug, CEO says
- Stock whipsawed as investors focus on safety concerns
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Compass Pathways Plc fell the most since its listing last year after results from an experimental therapy based on psilocybin, or so-called magic mushrooms, fueled investor concerns about the treatment.
The stock plunged as much as 28% on Tuesday. Some patients with treatment-resistant depression in the company’s midstage clinical trial didn’t show improvement compared with other treatments, and some had suicidal impulses. The decline was a reversal from sharp gains in early trading. Wall Street analysts view the results as mostly positive.