10:23 AM EST, 03/07/2024 (MT Newswires) -- Mind Medicine (MNMD) said Thursday the US Food and Drug Administration awarded breakthrough designation to its MM120 program for treating generalized anxiety disorder.

The Phase 2b study for MM120 in GAD met its key secondary endpoint. The 12-week topline data showed sustained and statistically significant effectiveness through Week 12, achieving "65% clinical response rate and 48% clinical remission rate," the company said.

Separately, the biopharmaceutical company expects gross proceeds of $175 million from an underwritten offering of 16.7 million common shares and a concurrent private placement of 12.5 million shares.

Both the underwritten offering and the private placement have a share price of $6 apiece, the company said. All of the stock is being sold by Mind Medicine.

Shares of Mind Medicine jumped 48% in recent Thursday trading.

Price: 8.79, Change: +2.85, Percent Change: +48.05