CMPS On Track For Best Week Ever On FDA Push For Psychedelics

• CMPS stock has gained 41% this week, on track for its best week ever, if gains hold. 
• The voucher, aimed at fast-tracking therapies addressing major national health priorities, entitles Compass to enhanced FDA communications and a dramatically shortened review period for COMP360.
• According to data from Koyfin, 11 of the 12 analysts covering CMPS rate it ‘Buy’ or higher, while one rates it ‘Hold.’

Shares of Compass Pathways (CMPS ) climbed 5.5% on Friday, adding to a larger rally this week, after the company said that the U.S. Food and Drug Administration granted its synthetic psilocybin formulation the Commissioner's National Priority Voucher for treatment-resistant depression.

CMPS stock has gained 45% this week, on track for its best week ever, if gains hold.

The voucher, aimed at fast-tracking therapies addressing major national health priorities, entitles Compass to enhanced FDA communications and a dramatically shortened review period for COMP360, as little as 1-2 months after the application is filed.

The company said that the agency has granted its rolling application request, allowing it to submit completed sections of its application rather than waiting for every section to be completed before review commences.

Compass has conducted two late-stage studies for COMP360, generating data across more than 1000 patients with treatment-resistant depression. COMP360 may demonstrate effects as quickly as within one day after administration, with durability lasting at least through 6 months for those who achieve a clinically meaningful response after one or two doses, Compass said.

Trump’s Push For Psychedelics

President Trump, over the last weekend, signed an executive order directing health agencies to speed up research on drugs like psilocybin and ibogaine.

Earlier on Friday, the FDA also stated it will issue national priority vouchers to three companies studying psilocybin for the treatment of treatment-resistant depression and major depressive disorder, and methylone for the treatment of PTSD. However, Compass is the only publicly traded company in the U.S. among the three.

How Did Retail Traders React?

On Stocktwits, retail sentiment around CMPS stock stayed within the ‘extremely bullish’ territory over the past 24 hours, while message volume remained at ‘extremely high’ levels.

A Stocktwits user expressed optimism for a further rally to $11.

Another user opined that the market reaction to the priority review voucher announcement “feels too muted.”

A third user termed the stock “super undervalued.”

According to data from Koyfin, 11 of the 12 analysts covering CMPS rate it ‘Buy’ or higher, while one rates it ‘Hold.’ The stock has a 12-month average price target of $22.08, implying a potential upside of about 141% from the last closing price.

On Friday, B. Riley initiated coverage of Compass Pathways with a ‘Buy’ rating and $17 price target. The company is on track to develop the first FDA-approved oral psychedelic drug for treatment-resistant depression, but the stock trades in the bottom percentile of its psychedelic peers, the analyst told investors in a research note. 

CMPS stock has gained 142% over the past 12 months.

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