Grizzle sits down with Terry Chong (Partner, Grizzle Ventures) to discuss one of the most anticipated IPOs in the psychedelic sector: Compass Pathways (NASD:CMPS)

Terry brings over a decade of institutional pharma and biotech investing insights to Grizzle.  

Terry shares with us his insights about Compass Pathways and how it differs from other psychedelic IPOs. He’s been very impressed by the regulatory rigor of their clinical trials, the company has received breakthrough status from the FDA. 

The brokers that have brought Compass Pathways public are very well known and reputable in the health care sector, namely ISI Evercore and Cowen. 

The company was founded in 2015, they have conducted FDA phase 1 and are currently in phase 2B studies using psilocybin capsule extracts in combination with psychotherapy to treat major depression disorders – specifically treatment resistant depression. 

The estimated addressable market for treatment resistant depression is $1bn to $1.5bn.  The initial IPO range was $14-16/share, and it came to market at $17/share. 

Compass Pathways current valuation is $800 million, If the company’s trials are successful we believe a valuation north of $5 billion would be in line with the closest peers. 


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