Atai Life Sciences on the Nasdaq for its IPO, June 18, 2021.
Atai Life Sciences, the Peter Thiel-backed start-up that wishes to make use of psychedelic medicine to deal with psychological well being situations, has elevated its stake in fellow drug developer Compass Pathways.
Atai purchased one other 619,095 Compass Pathways shares in current days, taking its stake within the firm from 19.4% to twenty.8%.
The new shares had been purchased at round $31 every and Atai paid round $12 million in whole.
Atai, which is already the biggest Compass Pathways shareholder, is planning to extend its stake in Compass Pathways to extra like 29% within the coming weeks, based on a supply near the businesses who most well-liked to stay nameless because the discussions are personal.
Christian Angermayer, the founder and chairman of Atai, instructed CNBC Monday that he believes Compass Pathways is without doubt one of the most undervalued and impactful biotech shares.
Compass Pathways, which Thiel has additionally invested in, needs to make use of psilocybin (the compound present in magic mushrooms) to deal with despair. It debuted on the Nasdaq inventory alternate final September and it has a present market worth of $1.4 billion.
Meanwhile, Atai listed on the Nasdaq in June, elevating $225 million at a valuation of $2.3 billion. The inventory instantly popped 40% nevertheless it has since halved in worth and Atai’s present market cap is $1.7 billion.
Billionaire Peter Thiel, PayPal co-founder and chairman of Palantir Technologies, throughout a information convention in Tokyo, Japan, on Nov. 18, 2019.
Kiyoshi Ota/Bloomberg by way of Getty Images
Atai, which describes itself as a drug growth platform, was set as much as purchase, incubate and develop psychedelics and different medicine that can be utilized to deal with despair, anxiousness, habit and different psychological well being situations.
There is rising curiosity in sure psychedelics after current medical research instructed that some might assist sufferers with a lot of psychological sicknesses, both together with conventional options or in circumstances the place nothing else has labored.
“The present therapies [for mental health issues] that are on the market are positively not ample,” firm co-founder Angermayer instructed CNBC in a earlier interview.
“I do not wish to say they do not work in any respect as a result of some persons are helped by them, however they are not ample.”
Almost a billion folks endure from psychological well being issues worldwide, based on the World Health Organization.