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Mind Medicine (MNMD)
NASDAQ:MNMD
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Mind Medicine
(NASDAQ:MNMD)
38Underperform
Positive Factors
Financial Position
MindMed ended 2024 with $274M in cash which it expects will be sufficient to fund operations into 2027.
Market Potential
The stock is viewed as significantly undervalued given the unmet need in and large sizes of the GAD/MDD markets.
Negative Factors
Market Competition
MM120's potential to rapidly reduce depressive symptoms could make it a compelling alternative to ketamine-based treatments, which require repeated administrations.
Product Development
The company is preparing to launch a second P3 program for major depressive disorder with the Emerge study to enroll 140 patients.
Mind Medicine (MNMD) vs. S&P 500 (SPY)
Market Cap
$417.54M
Dividend YieldN/A
Average Volume (3M)1.50M
Price to Earnings (P/E)―
Beta (1Y)2.10
Revenue GrowthN/A
EPS Growth26.24%
CountryUS
Employees57
SectorHealthcare
Sector Strength78
IndustryBiotechnology
Share Statistics
EPS (TTM)-1.91
Shares Outstanding75,368,360
10 Day Avg. Volume1,256,577
30 Day Avg. Volume1,500,063
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
Price to Cash Flow (P/CF)-4.90
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$23.22Price Target Upside268.57% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
Mind Medicine Business Overview & Revenue Model
Company DescriptionMind Medicine (MNMD), also known as MindMed, is a biotechnology company focused on developing psychedelic-inspired therapies for the treatment of mental health disorders. The company operates in the biopharmaceutical sector, primarily targeting conditions such as anxiety, depression, addiction, and ADHD through innovative drug development. MindMed's core products and services include research and development of novel psychedelic compounds, clinical trials, and collaborations with healthcare professionals to create effective mental health treatments.
How the Company Makes MoneyMind Medicine makes money through a revenue model that primarily involves research and development activities aimed at creating marketable psychedelic-inspired therapeutics. The company's key revenue streams are anticipated to come from the successful commercialization of its drug candidates, which are currently under various stages of clinical trials. Additional revenue could be generated through strategic partnerships with pharmaceutical companies, licensing agreements, and collaborations with research institutions. MindMed may also explore opportunities for grants and government funding to support its research initiatives. However, as a biotech company still in the development phase, substantial revenue generation is contingent upon regulatory approval and market acceptance of its therapeutic products.
Mind Medicine Financial Statement Overview
Summary
Mind Medicine's financials reflect its status as a clinical-stage biotech firm. The income statement highlights a lack of revenue and persistent losses due to high R&D costs, typical for its industry. The balance sheet shows a strong liquidity position but a reliance on equity financing. Cash flows indicate a need for external financing to sustain operations. While the company is positioned for potential growth if its pipeline succeeds, the financial health is precarious without incoming revenue or successful fundraising.Income Statement
Mind Medicine has consistently reported zero revenue over several years, reflecting its pre-revenue stage typical in the biotechnology industry. The net income is negative due to high R&D and operational expenses, which is common for biotech firms investing in drug development. However, the lack of revenue and increasing net losses indicate financial strain, which can be concerning if not managed through external funding.10
Very Negative
Balance Sheet
The balance sheet reveals a strong cash position, with cash and short-term investments significantly exceeding total liabilities, resulting in negative net debt. The company has no debt, which reduces financial risk. However, the equity ratio is declining, and the company is heavily reliant on equity financing. This could dilute existing shareholders if the trend continues without revenue generation.35
Negative
Cash Flow
Cash flow analysis shows negative operating and free cash flows, reflecting high operational expenditures without revenue inflow. The company relies heavily on financing activities to fund operations, which is unsustainable in the long term without generating positive cash flow from operations.25
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | Gross Profit |
| 0.00 | -3.16M | -3.22M | -2.62M | 0.00 | EBIT |
| -103.92M | -93.87M | -66.33M | -96.36M | -33.03M | EBITDA |
| -103.92M | -92.57M | -53.57M | -91.22M | -33.77M | Net Income Common Stockholders |
| -108.68M | -95.73M | -47.26M | -93.04M | -34.10M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 273.74M | 99.70M | 142.14M | 133.54M | 80.09M | Total Assets |
| 302.15M | 124.54M | 169.99M | 164.00M | 81.52M | Total Debt |
| 21.85M | 14.13M | 72.00K | 0.00 | 0.00 | Net Debt |
| -251.89M | -85.58M | -142.07M | -133.54M | -80.09M | Total Liabilities |
| 60.70M | 46.41M | 19.08M | 12.34M | 5.65M | Stockholders Equity |
| 241.45M | 78.13M | 150.92M | 151.66M | 75.87M |
| Cash Flow | Free Cash Flow | |||
| -79.13M | -64.36M | -50.14M | -45.82M | -23.60M | Operating Cash Flow |
| -79.13M | -64.36M | -50.14M | -45.82M | -23.60M | Investing Cash Flow |
| 0.00 | 0.00 | 0.00 | -297.00K | 0.00 | Financing Cash Flow |
| 253.20M | 21.85M | 59.05M | 98.82M | 96.70M |
Mind Medicine Technical Analysis
Negative
6.30
Price Trends
7.10
Negative
7.25
Negative
6.99
Negative
Market Momentum
-0.29
Positive
32.01
Neutral
9.18
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MNMD, the sentiment is Negative. The current price of 6.3 is below the 20-day moving average (MA) of 6.37, below the 50-day MA of 7.10, and below the 200-day MA of 6.99, indicating a bearish trend. The MACD of -0.29 indicates Positive momentum. The RSI at 32.01 is Neutral, neither overbought nor oversold. The STOCH value of 9.18 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MNMD.
Mind Medicine Risk Analysis
Mind Medicine disclosed 74 risk factors in its most recent earnings report. Mind Medicine reported the most risks in the “Tech & Innovation” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Mind Medicine Peers Comparison
Overall Rating
UnderperformOutperform
Sector (48)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
48 Neutral | $6.86B | 1.11 | -50.22% | 2.47% | 16.71% | 1.53% | |
45 Neutral | $667.42M | ― | -19.58% | ― | ― | -9.46% | |
43 Neutral | $191.26M | ― | -81.56% | ― | ― | 3.88% | |
42 Neutral | $9.16M | ― | -132.33% | ― | ― | 19.21% | |
42 Neutral | $1.97M | ― | -58.79% | ― | ― | 51.37% | |
42 Neutral | $245.90M | ― | -62.43% | ― | -0.90% | -89.51% | |
38 Underperform | $417.54M | ― | -68.01% | ― | ― | 26.24% |
* Healthcare Sector Average
Performance Comparison
MNMD
Mind Medicine
5.55
-5.45
-49.55%
RLMD
Relmada Therapeutics
0.28
-4.31
-93.90%
TSE:CYBN
Cybin
0.14
0.00
0.00%
CMPS
COMPASS Pathways
2.83
-6.67
-70.21%
ATAI
ATAI Life Sciences
1.32
-1.13
-46.12%
GHRS
GH Research
9.86
-1.28
-11.49%
Mind Medicine Earnings Call Summary
Earnings Call Date: Mar 6, 2025 | % Change Since: -1.25% | Next Earnings Date: May 14, 2025
Earnings Call Sentiment Positive
The earnings call highlighted MindMed's strong financial position and progress towards Phase III trials, while also acknowledging rising R&D expenses and a net loss. The sentiment leans towards positive due to the company's strong cash reserves and clear roadmap for advancing clinical trials.Highlights
Strong Cash Position
MindMed ended the quarter with $295.3 million in cash and cash equivalents, compared to $99.7 million at the end of 2023, sufficient to fund operations into 2027.
Phase III Trials Progress
The company is on track to initiate multiple Phase III studies for MM-120-ODT for GAD and MDD, with the first study, VOYAGE, set to start by the end of 2024.
Clinical Trial Design Strategy
MindMed has implemented rigorous trial designs to address methodological challenges, such as functional unblinding, with strategies like central raters and additional control arms.
R&D Advancements
R&D expenses increased to $17.2 million, reflecting advancement into pivotal studies and increased personnel costs. The company plans to ramp up R&D expenses further in 2025.
Lowlights
Increased R&D Expenses
R&D expenses rose by $4 million compared to the same period in 2023, reflecting the increased costs associated with advancing MM-120-ODT into pivotal studies.
Revenue and Net Loss
The net loss for the quarter was $13.7 million, though it decreased from $17.9 million in the same period in 2023.
Company Guidance
During the Mind Medicine (MNMD) Q3 2024 earnings call, the company provided detailed guidance on their Phase III clinical programs for MM-120, an orally disintegrating tablet aimed at treating generalized anxiety disorder (GAD) and major depressive disorder (MDD). The company is set to initiate the VOYAGE study for GAD by the end of 2024, followed by the PANORAMA study for GAD and the EMERGE study for MDD in the first half of 2025. These studies will address a significant unmet medical need, affecting approximately 51 million adults in the U.S. With 200 participants anticipated for VOYAGE and 240 for PANORAMA, both studies will leverage a 12-week double-blind, placebo-controlled design followed by a 40-week extension. The company reported a net loss of $13.7 million for Q3 2024, a decrease from $17.9 million in Q3 2023, and ended the quarter with $295.3 million in cash, expected to fund operations into 2027.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.