COMPASS Pathways, a British Phase 2 biotech developing a psilocybin-based therapy for depression, announced terms for its IPO on Monday.
The Cheshire, United Kingdom-based company plans to raise $101 million by offering 6.7 million shares at a price range of $14 to $16. At the midpoint of the proposed range, COMPASS Pathways would command a fully diluted market value of $569 million.
The company is focusing on using its proprietary formulation of psilocybin, COMP360, in conjunction with psychological support as a way to help individuals who have treatment-resistant depression, or TRD, a subset of major depressive disorder, or MDD. COMPASS is currently evaluating COMP360 in conjunction with psychological support in a Phase 2b trial and plans to report data from this trial in late 2021. Classified as a Schedule I drug, psilocybin is considered a serotonergic hallucinogen and is an active ingredient in some species of mushrooms.
COMPASS Pathways was founded in 2015 and plans to list on the Nasdaq under the symbol CMPS. Cowen, Evercore ISI and Berenberg are the joint bookrunners on the deal. It is expected to price during the week of September 14, 2020.
