Mind Medicine (MNMD) is experiencing significant stock gains, with the company’s share price rising by 16.9% as of 3:15 p.m. ET on Friday and reaching up to 20.7% earlier in the day. This boost in valuation follows the approval of Robert F. Kennedy Jr. as the Secretary of Health and Human Services (HHS) in a Senate vote. Kennedy has expressed support for the use of psychedelics in therapeutic treatments.
In a Senate vote of 52-to-48, RFK Jr. was confirmed as the new HHS Secretary of the United States. Among former President Donald Trump’s cabinet nominations, Kennedy’s confirmation was considered one of the more uncertain. However, he secured the position with almost unanimous backing from Republican senators, with Sen. Mitch McConnell from Kentucky being the sole Republican against the confirmation. Kennedy’s endorsement of psychedelic drugs as therapeutic options may benefit Mind Medicine, potentially easing the path for the biotech company to introduce its products to the market.
Looking ahead, the political landscape appears to be shifting in Mind Medicine’s favor. Although the clinical-stage biopharmaceutical company has not yet generated revenue, it is progressing through testing phases for its primary treatments. In a press release dated December 16, Mind Medicine announced that it plans to begin a phase 3 study for lysergide D-tartrate (LSD) as a treatment for generalized anxiety disorder in the first half of 2025. On January 16, the company reported that the first patient had been dosed in this clinical test. The trial is expected to involve approximately 250 patients, and results could significantly influence Mind Medicine’s share price.
