We are now up 544% ($1.8 billion) from where we added it to the Watch List in June of 2025, at $2.36 a share. Some time it pays to be patient.
What a Great Story!
COMPASS Pathways went public on September 18, 2020. The IPO was $17.00 per share, which was above its initial target range of $14 to $16. At the $17.00 IPO price, the company’s initial valuation was estimated at roughly $578 million. Then it ripped with a first-day gain over 70%, closing at $29.00, which pushed its market cap to approximately $1.06 billion.
The all-time peak closing stock price following its IPO was $59.20, reached on December 23, 2020. At this peak share price, the company’s valuation surged to an all-time high market capitalization of approximately $2.1 billion. This rapid rise occurred just three months after its initial September debut, fueled by intense investor enthusiasm surrounding the emerging psychedelic medicine sector.
We launched the Psychedelic Stock Review in August of 2021, but with sudden waning investor enthusiasm, we sidelined it December of 2022.
We next brilliantly (okay, luckily) waited until January of 2023, after ATAI’s market cap had fallen from $3.4 billion to $301 million, before adding it to the Watch List at $1.80. We also waited until June of 2025, after the Compass cap market had fallen from $2.1 billion to $210 million, before adding it to the Watch List at $2.66.
Dec 2023: Adding ATAI (ATAI) to 2024 Watch List, After Anti Depression Treatment Bombs, in Front of the FDA.
June 2025: Compass Pathways (CMPS) Gets a Beat Down. Adding to 2025 Watch List, $2.36
Combined we sidestepped $5.4 billion in losses! But the story gets even better..
We banked a market gain of $2.4 billion in ATAI this month, as it just got acquired by Eli Lilly and Company (NYSE: LLY). When combined with the market cap gain we currently have in Compass of $1.8 billion — we are up a staggering $4.2 billion.
Can’t make this up!
In a short two-and-half years we avoided a $5.4 billion loss, and participated in a $4.2 billion gain, for a grand total of, $9.6 billion, from two beaten down stocks, in a beaten down sector.
ATAI and Compass Pathway Original Underwriters
PRICE TARGETS RAISED
Things (investor enthusiasm) for the sector, have recently changed following FDA related news. So we are still working on a new broader Watch List. Stay tuned.
The ‘street’ has been ramping up price targets on Compass with H.C. Wainwright Patrick Trucchio, leading the charge with a $65 target.
If it hits that we’ll be up 2,654% making it one of out top 5 performing Watch List ideas ever (tied for 5th). Fingers crossed.
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7 Billion-Dollar Watch List Gainers
- Immunomedics (IMMU) $3 to $87 up 2,800%, a gain of $20.7 billion. Acquired by Gilead Sciences (GILD)
- Dicerna (DRNA) $3.30 to $38.25 up 1,175%, a gain of $2.9 billion. Acquired by Novo Nordisk (NVO).
- Provention Bio (PRVB) $4.60 to $25 up 443%, a gain of $2.8 billion. Acquired by Sanofi (SNY).
- Bavarian Nordic (BVRNY) $7.60 to $12.25 up 84%, a gain of $1.3 billion. Deal fell through, but we said Auf Wiedersehen in advance!
- ATAI Beckley (ATAI) $1.18 to $7.22 up 301%, a gain of $2.5 billion. While in the works with Eli Lilly (LLY), we said Auf Wiedersehen!
- Compass Pathways (CMPS) $2.36 to $14.35 up 446%, a gain of $1.8 billion. Still in play.
- Replimune (REPL) $2.17 to $16.12 up 642%, a gain of $1.3 billion. Still in play, but we said Auf Wiedersehen.
Disclaimer
About Compass Pathways
We believe mental health patients deserve the possibility of a better future. Compass Pathways plc (Nasdaq: CMPS) is a biotechnology company dedicated to unlocking urgently needed new treatment options in mental health care. Our initial focus is developing COMP360 psilocybin, a proprietary, investigational, synthetic psilocybin treatment under evaluation for treatment-resistant depression (TRD) and post-traumatic stress disorder (PTSD). COMP360 is a potentially first-in-class treatment and has Breakthrough Therapy designation from the U.S. Food and Drug Administration (FDA), as well as Innovative Licensing and Access Pathway (ILAP) designation in the UK for TRD. We are leading the world’s largest classic psychedelic clinical program in TRD, and building upon that robust foundation, we are executing a late-stage trial evaluating COMP360 for PTSD, another condition with high unmet need. Our goal is to advance treatments that move the field of psychiatry towards treatment options that offer rapid onset and sustained durability with infrequent dosing.
Compass is headquartered in London, UK, with a U.S. office in New York.
We are driven by our purpose of unlocking pathways to be – opening futures filled with possibility. Together, we are on an ambitious journey toward enabling people living with mental health conditions to find clarity through self-discovery, because every journey needs a Compass.
Forward-looking statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. In some cases, forward-looking statements can be identified by terminology such as “may”, “might”, “will”, “could”, “would”, “should”, “expect”, “intend”, “plan”, “objective”, “anticipate”, “believe”, “contemplate”, “estimate”, “predict”, “potential”, “continue” and “ongoing,” or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. Forward-looking statements include express or implied statements relating to, among other things, statements regarding our business strategy and goals; our plans and expectations regarding this U.S. healthcare provider training grant program and the availability of training programs for U.S. healthcare providers; the potential for our current or any future clinical trials to support regulatory filings and approvals for COMP360 psilocybin treatment; our expectations regarding the safety or efficacy of our investigational COMP360 psilocybin treatment, including as a treatment for treatment of TRD and PTSD; our ability to obtain regulatory approval and adequate coverage and reimbursement; our ability to transition from a clinical-stage to a commercial-stage organization and effectively launch a commercial product, if regulatory approval is obtained; our expectations regarding our commercial readiness and scalability of infrastructure and training programs to deliver treatment at scale, if regulatory approval is obtained; and our expectations regarding the benefits of our investigational COMP360 psilocybin treatment. The forward-looking statements in this press release are neither promises nor guarantees, and you should not place undue reliance on these forward-looking statements because they involve known and unknown risks, uncertainties, and other factors, many of which are beyond Compass’s control and which could cause actual results, levels of activity, performance or achievements to differ materially from those expressed or implied by these forward-looking statements.
These risks, uncertainties, and other factors include, among others: uncertainties associated with risks related to clinical development which is a lengthy and expensive process with uncertain outcomes, and therefore our clinical trials may be delayed or terminated and may be more costly than expected; our need for substantial additional funding to achieve our business goals and if we are unable to obtain this funding when needed and on acceptable terms, we could be forced to delay, limit or terminate our clinical trials; our efforts to obtain marketing approval from the applicable regulatory authorities in any jurisdiction for our investigational COMP360 psilocybin treatment may be unsuccessful; our efforts to commercialize and obtain coverage and reimbursement for our investigational COMP360 psilocybin treatment, if approved, may be unsuccessful; the risk that this U.S. healthcare provider training grant program will not continue or will not achieve its goals or that the training programs for U.S. healthcare providers will not be available or achieve the anticipated benefits and those risks and uncertainties described under the heading “Risk Factors” in Compass’s most recent annual report on Form 10-K or quarterly report on Form 10-Q and in other reports we have filed with the U.S. Securities and Exchange Commission (“SEC”), which are available on the SEC’s website at www.sec.gov. Except as required by law, Compass disclaims any intention or responsibility for updating or revising any forward-looking statements contained in this press release in the event of new information, future developments or otherwise. These forward-looking statements are based on Compass’s current expectations and speak only as of the date hereof.
