Yahoo Finance’s Alexis Christoforous and JR Rahn, MindMed CEO, discuss company outlook amid the coronavirus pandemic.
Video Transcript
ALEXIS CHRISTOFOROUS: The global pandemic has created a huge spike in mental health conditions. This summer, the CDC reported 11% of American adults considered suicide, while a whopping 40% said they were struggling with mental health or substance abuse. Companies like MindMed are creating psychedelic drugs to help people battle these mental health issues. Joining me now is MindMed’s Co-Founder and Co-CEO, JR Rahn.
JR, good to have you on the show. I know that you’re conducting clinical trials on these psychedelic drugs for anxiety, opioid use. Tell us why LSD and magic mushrooms are more effective in treating these disorders than what’s already on the market?
JR RAHN: Well, I think that psychedelic medicines offer a new paradigm in mental health. We’re really looking at what is the underlying cause of many of these illnesses that are affecting Americans. And traditional medicines in the CNS space that are treating things like depression, addiction, and anxiety really are seeking to numb and mask the issues that surround these illnesses.
So, things like Xanax, while they might make you feel better, they can also be highly addictive and are not dealing with the underlying problem or the underlying trauma that is, ultimately, causing you to have this– these mental health incidents. And I think it’s– it’s important now more than ever, as we continue here in lockdown with COVID-19.
ALEXIS CHRISTOFOROUS: You know, investors are calling this asset class the new cannabis, but, like cannabis, it has to deal with the regulations. What kind of regulatory hurdles do you have to clear with these psychedelic drugs? And are they– what kind of an impediment are they to growth in the industry?
JR RAHN: Well, we’re, in many ways, compared to cannabis mainly because we’re a schedule I substance, but these are very different substances, cannabis and psychedelics. Actually, psychedelics were originally discovered and developed inside large pharmaceutical companies like Novartis in the early days of Novartis at a place called Sandoz laboratories in Switzerland.
In terms of regulatory hurdles that we– that we face and need to achieve, everything that we do is– is federally compliant. We are doing everything through the FDA pathway or national regulators in various other countries where we conduct trials. We are not looking to go the same way that cannabis did on a state-by-state basis, looking for state– statewide approvals. Companies that are taking this biotech approach are really looking at proving out the safety and efficacy of these medicines at the FDA.
There are efforts that are looking, in some states, to decriminalize and legalize psychedelics. A measure, Measure 109, just passed in Oregon, which would legalize psilocybin, the active ingredient in magic mushrooms. We think this is really a voice and the will of the people that we need innovative solutions to mental health, but we believe, ultimately, these become mainstream medicines only with FDA approvals.
ALEXIS CHRISTOFOROUS: You have some big-name backers. “Shark Tank” star Kevin O’Leary who is a friend here of Yahoo Finance backs your company, also, the founder of Toms shoes. How do you get those folks to– to buy in? And maybe that stigma around psychedelic drugs is beginning to dissipate.
JR RAHN: Look, I was originally turned down by Mr. Wonderful when I first pitched him on the idea of using psychedelics to treat mental health, but I think, when you look at the underlying problem, these are large societal issues. 40% of Americans had a mental health or addiction in the midst of COVID-19. 11% of Americans, in the month of June, considered committing suicide.
These are issues that are going to affect our country for many, many years in the future. And I think the biggest outcome and the biggest impact that COVID-19 is going to have on society is in mental health and addiction. And so we need to work on innovative treatments that actually seek to solve the underlying problems with– that are causing these illnesses.
And so, to get people like Blake from Toms shoes and Kevin O’Leary on board, they’re humans too, right? And I think everybody should want to find the solution to these problems that are plaguing society.
ALEXIS CHRISTOFOROUS: And, to that end, I know you’re partnered recently with NYU Langone Medical Center. What are you doing with them?
JR RAHN: So NYU Langone Health has been a big researcher in the psychedelic space. What we’re interested with NYU is to start training the next generation of psychiatrists on how we can start implementing psychedelic medicines into practices across America in order to, eventually, scale these– these medicines. Once and if they are approved by the FDA, we’re going to need a network of psychiatrists and therapists that are able to administer them to patients.
And so we’re working on protocols, and we’ll be conducting more research in partnership with NYU. That’s the objective, to find better ways to train the next generation of psychiatrists.
ALEXIS CHRISTOFOROUS: Now it looks like investors are comfortable betting on drugs that are still federally illegal. You had COMPASS Pathways, also dealing with psychedelic drugs, having a gangbusters IPO a couple of months ago with a market valuation of a billion dollars, Peter Thiel backing that company. In terms of MindMed, I know that you trade on the over-the-counter market. You also trade at a Canadian exchange. But you are looking to uplist on the NASDAQ. What kind of timeline is there for that?
JR RAHN: Yeah, we– we do trade in the United States on the OTC under MMEDF. Our objective is to get to a NASDAQ uplisting as quickly as possible. There’s a lot of folks that want to list on NASDAQ right now. And we submitted our application in late September and are going through all the regulatory processes now. And we hope to have some– some very good news soon, subject to the regulators evaluating us, but I think NASDAQ is a great opportunity.
As you alluded to, COMPASS Pathways had a very successful IPO there. It really demonstrates, I think, that Wall Street is looking at mental health and addiction, potentially, as America’s next great growth story. That’s sad, but I think it’s true.
