| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | n/a | n/a |
| Intrinsic value (DCF) | n/a | |
| Graham-Dodd Method | n/a | |
| Graham Formula | n/a |
COMPASS Pathways plc (NASDAQ: CMPS) is a pioneering mental healthcare company focused on developing innovative psychedelic-based therapies to address unmet needs in treatment-resistant depression (TRD) and post-traumatic stress disorder (PTSD). Headquartered in London, the company’s lead candidate, COMP360, is a proprietary psilocybin therapy that has completed Phase IIb clinical trials for TRD and is advancing in Phase II trials for PTSD. Operating in the high-growth psychedelic therapeutics sector, COMPASS Pathways leverages cutting-edge neuroscience and clinical research to position itself as a leader in next-generation mental health treatments. With no current revenue and a focus on R&D, the company represents a high-risk, high-reward investment opportunity in the emerging field of psychedelic medicine. Its Nasdaq listing and collaborations with leading research institutions underscore its credibility in this nascent but rapidly evolving industry.
COMPASS Pathways offers speculative growth potential as a clinical-stage biotech targeting the $10+ billion treatment-resistant depression market with its COMP360 psilocybin therapy. The company’s Phase IIb data showed statistically significant reduction in depression symptoms, but significant risks remain: Phase III trials require substantial capital (current cash runway ~2 years), regulatory hurdles for Schedule I drugs persist, and commercialization timelines extend beyond 2025. With negative EPS (-$2.30), no revenue, and high beta (2.277), CMPS suits only risk-tolerant investors. Upside depends on clinical success, FDA/EMA approvals, and potential partnerships with big pharma seeking psychedelic pipeline expansion.
COMPASS Pathways holds first-mover advantage in psilocybin therapy for TRD with its Phase IIb-completed COMP360 program, putting it 12-18 months ahead of most peers in clinical development. Its patent portfolio covering crystalline psilocybin formulations and treatment protocols provides some IP protection. However, the company faces intensifying competition from both psychedelic-focused biotechs (like ATAI Life Sciences) and traditional pharma companies repurposing existing drugs for TRD. COMPASS’ capital-light model (outsourced manufacturing) preserves cash but creates dependency on third parties. While its academic partnerships (including with King’s College London) bolster credibility, the lack of revenue diversification and reliance on a single compound (COMP360) heightens binary risk. The company’s UK base provides regulatory flexibility but complicates US market access compared to North American competitors. Pricing power remains unproven in a space where payor reimbursement for psychedelic therapies is still undefined.