Atai backed by Peter Thiel acquires shares of Compass Pathways

Atay Life Sciences on the Nasdaq Stock Exchange for its initial public offering on June 18, 2021.

Source: Nasdaq

Atay Life Sciences, the startup backed by Peter Thiel that wants to use psychedelic drugs to treat mental health conditions, has increased its stake in a fellow drug developer compass tracks.

Atai has bought another 420,000 shares in Compass Pathways in recent days, raising its stake in the company from 19.4% to 20.8%.

New shares were purchased for about $31 each and Atai paid about $12 million in total.

Atai, already the largest shareholder in Compass Pathways, plans to increase its stake in Compass Pathways to more than 29% in the coming weeks, according to a source close to the companies who preferred to remain anonymous because the discussions are private.

Christian Angermayr, founder and president of Atai, told CNBC Monday that he believes Compass Pathways is one of the most undervalued and influential biotech stocks.

compass tracksThiel, who has also invested in, wants to use psilocybin (the compound found in magic mushrooms) to treat depression. First appeared on Nasdaq The stock exchange last September and its current market value is $1.4 billion.

Meanwhile, Atay listed on Nasdaq in June, raising $225 million at a valuation of $2.3 billion. Stocks popped right away 40% but has since halved and Atai’s current market capitalization is $1.7 billion.

Billionaire Peter Thiel, co-founder of PayPal and chairman of Palantir Technologies, during a press conference in Tokyo, Japan, on November 18, 2019.

Kiyoshi Ota/Bloomberg via Getty Images

Atai, which describes itself as a drug development platform, was created to acquire, incubate and develop psychedelic and other drugs that can be used to treat depression, anxiety, addiction, and other mental health conditions.

There is a growing interest in some narcotic drugs after recent times Clinical studies It has been suggested that some can help patients with a number of mental illnesses, either in combination with traditional solutions or in cases where nothing else works.

Current treatments [for mental health issues] Angermayr, co-founder of the company, told CNBC in a previous interview.

“I don’t want to say they don’t work at all because some people help them, but it’s not enough.”

According to the World Health Organization, approximately one billion people suffer from mental health problems worldwide.


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