Psyence Biomedical Ltd ( PBM ) shares are trading lower by 28.6% to $0.25 during Wednesday’s session. The company earlier announced it entered into an exclusive licensing agreement with PsyLabs, a company specializing in psychedelic pharmaceutical ingredients.

Under this agreement, PsyLabs will provide Psyence Biomed with pharmaceutical-grade, nature-derived psilocybin for use in clinical trials and potential commercialization. Psyence Biomed plans to focus initially on alcohol use disorder (AUD) in their clinical trials, with future development work extending into 2025.

Additionally, they aim to begin a Phase IIb trial to assess psilocybin’s effectiveness in treating Adjustment Disorder in advanced cancer patients under palliative care.

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Should I Sell My PBM Stock?

Whether to sell or hold a stock largely depends on an investor's strategy and risk tolerance. Swing traders may sell an outperforming stock to lock in a capital gain, while long-term investors might ride out the turbulence in anticipation of further share price growth.

Similarly, traders willing to minimize losses may sell a stock that falls a certain percentage, while long-term investors may see this as an opportunity to buy more shares at a discounted price.

Shares of Psyence Biomedical ( PBM ) have lost 90.13% year to date. This compares to the average annual return of -66.93%, meaning the stock has underperformed its historical averages. Investors can compare a stock's movement to its historical performance to gauge whether this is a normal movement or a potential trading opportunity.

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According to data from Benzinga Pro, PBM has a 52-week high of $4.31 and a 52-week low of $0.21.