Psychedelics Briefs: atai Value Surges in Nasdaq Launch; MindMed Announces CEO Transition

atai Life Sciences, the German biopharmaceutical firm developing psychedelic and non-psychedelic compounds for mental health disorders, saw the value of its shares increase by 40% in their first day of trading on the Nasdaq exchange, putting the company’s value at $3.19 billion after its highly anticipated launch on the U.S. stock market.

Earlier this month, atai announced an initial public offering of about 14 million of its common shares, which were projected to fetch between $13 and $15 per share, a price that would put the company’s valuation at $2.3 billion, according to a Reuters report. Trading on Friday opened at $21 per share before settling lower later in the day. The stock closed at $18.38 on Wednesday afternoon.

atai is backed by billionaire investor Peter Thiel, and in March, the company announced the close of a $157 million funding round that was led by existing investors Apeiron Investment Group, the family office of company founder Christian Angermayer and Thiel Capital, along with new investor Woodline Partners.

MindMed Searches for CEO

Clinical-stage pharmaceutical company MindMed this month announced that co-founder and CEO J.R. Rahn has stepped down from his position as chief executive and a director. Robert Barrow, MindMed’s chief development officer, is now serving as CEO on an interim basis, and the company said in a release that he is a candidate to be appointed to the position permanently.

Under Rahn, MindMed has gone public on the NEO Exchange in Canada and the Nasdaq stock market in the U.S. The company raised more than $204 million, developing a drug development and technology team that is progressing psychedelic medicines to help treat patients with mental illness.

Barrow brings more than 10 years of experience as a pharmaceutical executive having led organizations and drug development programs in multiple areas. In announcing the executive transition, MindMed credited Barrow for playing “a central role in the design and execution of a number of successful regulator and drug development strategies.”