BUZZ-Psychedelic drug developers’ stocks fall after Usona submits antidepressant application

November 2 - ** Compass Pathways (CMPS.O) shares fell 29% in afternoon trading, to $8.22

** Jefferies said that following a submission by non-profit Usona Institute for the approval of psilocybin to treat major depressive disorder, psychedelic stocks declined

** The brokerage stated that this application could lead to the therapy receiving approval by late 2026 or early 2027, making Usona the first FDA-approved psychedelic therapy

** It noted that both Usona's and Compass's COMP360 qualify for accelerated review under the CNPV program (link), aligning the review timelines for both psilocybin-based therapies

** Jefferies pointed out that Usona's application could raise questions about first-mover advantages in pricing and regulation, but added that the listed peers have stronger clinical data sets and greater commercial resources

** The report also mentioned that it remains unclear whether Usona intends to commercialize the therapy

** Jefferies added that even if Usona eventually launches the therapy, CMPS still plans to "actively" protect its intellectual property

** Definium Therapeutics stock DFTX.O fell 10.5%, Helus Pharma shares HELP.NLB, HELP.O dropped 17%, while GH Research shares GHRS.O fell 1.8%

** Given that DFTX and HELP's projects are based on different psychedelic compounds, the brokerage believes this event has limited impact on the two companies

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