Why Compass Pathways Stock Slumped This Week

Shares of the psychedelic healthcare company Compass Pathways (NASDAQ: CMPS) sank by nearly 30% through Thursday's closing bell this week, according to data from S&P Global Market Intelligence. Last Tuesday, the company reported its 2021 third-quarter earnings results ahead of the opening bell.

But the real needle-mover for Compass this week was clearly the positive phase 2b trial results for its lead product candidate, COMP360, as a novel therapy for treatment-resistant depression (TRD). The company announced these highly anticipated trial results immediately before its Q3 earnings report Tuesday morning. COMP360 is a psilocybin-based treatment, which is administered in a guided session by a trained therapist. Psilocybin is the main hallucinogenic compound found in magic mushrooms. 

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Source Fool.com