Bright Minds Biosciences Stock Falls Pre-Market After Whopping 1,445% Gain, But Retail’s Still Hooked

Shares of Bright Minds Biosciences, Inc. ($DRUG) dropped by as much as 34% in pre-market trading on Wednesday after an enormous 1,445% surge in the previous session.

Despite the apparent profit-booking, retail interest remains high.

The Vancouver-incorporated biotech company issued a press release late Tuesday stating it was “unaware of any material changes in the company’s operations that would account for the recent increase in market activity.”

That was reportedly in response to a request from the Canadian Investment Regulatory Organization, which oversees trading on the company’s home exchange.

On Stocktwits, DRUG was the top trending ticker early Wednesday, with message volume spiking nearly 2,500% in the previous session. Retail interest surged, with the stock gaining 71% more followers.

Pre-market trading volume as of 7:15 a.m. ET, Wednesday, was at about 600,000 shares, far exceeding the daily average of just 24,000.

Bright Minds focuses on developing drugs targeting serotonin-mediated diseases, and recently started a Phase 2 trial for a treatment aimed at drug-resistant epilepsy.

The company, which has yet to generate any revenue, in August reported a net loss of $1.8 million for the nine months ending June 30, 2024 — down significantly from a $5.8 million loss during the same period in 2023.

With $6.2 million in cash and working capital of $6.1 million, it said it has sufficient funds to operate through 2026.

As of Tuesday’s close, Bright Minds’ stock has gained 1,991% year-to-date.

The sudden rise sent its market cap soaring from $4 million to nearly $172 million before the pre-market drop.