Mind Medicine (MindMed) Inc. ( MNMD ) shares are trading lower Wednesday after a Food and Drug Administration (FDA) panel rejected the approval of MDMA therapy for people with post-traumatic stress disorder (PTSD).

The Details:

MindMed and other psychedelic stocks, including ATAI Life Sciences N.V ( ATAI ) and COMPASS Pathways Plc ( CMPS ) , are down after an FDA panel rejected the use of MDMA-assisted therapy for PTSD on Tuesday.

The FDA panel voted 9 to 2 on whether the MDMA-assisted therapy was effective and 10 to 1 on whether the proposed treatment's benefits outweighed its risks. Members of the panel expressed concerns about the designs of the two studies submitted by Lykos Therapeutics, including study participants correctly identifying MDMA versus the placebo.  

The FDA's rejection of the Lykos Therapeutics drug highlights the regulatory issues faced by companies developing psychedelic therapies and treatments. 

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Will MNMD Stock Go Up?

When trying to assess whether or not Mind Medicine will trade higher from current levels, it's a good idea to take a look at analyst forecasts.

Wall Street analysts have an average 12-month price target of $33.75 on Mind Medicine. The Street high target is currently at $75 and the Street low target is $20. Of all the analysts covering Mind Medicine, 8 have positive ratings, no one has neutral ratings and no one has negative ratings.

In the last month, 4 analysts have adjusted price targets. Here's a look at recent price target changes [Analyst Ratings]. Benzinga also tracks Wall Street's most accurate analysts. Check out how analysts covering Mind Medicine have performed in recent history.

Stocks don't move in a straight line. The average stock market return is approximately 10% per year. Mind Medicine is 86.33% up year-to-date. The average analyst price target suggests the stock could have further upside ahead.

For a broad overview of everything you need to know about Mind Medicine, visit here. If you want to go above and beyond, there's no better tool to help you do just that than Benzinga Pro. Start your free trial today.

MNMD, ATAI, CMPS Price Action: According to Benzinga Pro, MindMed shares are down 15% at $7.00, Atai Life Sciences ( ATAI ) shares are down 6.55% at $1.43 and Compass Pathways ( CMPS ) shares are down 11.5% at $6.78 at the time of publication Wednesday.

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