Can Psychedelics Break Through in Depression? Recent Readouts Leave Investors Wanting More - BioSpace

Psychedelics for treatment-resistant depression are getting renewed attention, but market readouts have left investors demanding stronger signals on efficacy and durability. Compass Pathways released Phase III data for psilocybin-based COMP360 with a 3.6 point MADRS reduction at 6 weeks versus placebo, and its stock reaction was muted. In contrast, Beckley Psytech and atai’s intranasal 5-MeO-DMT candidate BPL-003 produced a larger 11.1 point MADRS reduction in a Phase II setting, drawing more positive Wall Street feedback. The article links these reactions to expectations about effect size and what data companies choose to disclose. The piece also highlights practical and regulatory constraints shaping commercial viability. Executives emphasize shorter in-clinic time for 5-MeO-DMT compared with psilocybin, while clinicians and analysts raise concerns about whether any early benefits will last long enough to be cost-effective. It further frames the pipeline shift toward depression versus PTSD after Lykos’ MDMA-assisted PTSD setback, and notes FDA leadership support for faster review timelines.