Compass Pathways Limited: Entering a Catalyst Rich Period

A sunny June might put everyone in a good mood

This will be a “best ideas only” bio substack providing actionable, highly digestible and high conviction value to investors focused on quality not quantity. Disclaimer: Nothing in this article (or substack) is considered investment advice and is solely the opinion of the author.

LONG
Ticker: CMPS
Duration: +14 months
Target: +$29
Likely Outcome: Approval
Value Driver: High PoS and catalyst rich 12 month period for COMP360

Compass Pathways Limited (CMPS) is a clinical-stage biotechnology firm focused on developing COMP360, its psilocybin therapy candidate, to address various psychiatric and mood disorders. The company's primary indication for COMP360 is treatment-resistant depression (TRD). I believe there is a high-likelihood of approval for this candidate coming from the data release in late June, offering a compelling risk/reward.

A significant upcoming milestone for Compass Pathways is the anticipated release of topline data from its pivotal Phase III COMP005 trial in late June 2025. This trial is assessing a single dose of COMP360 as a monotherapy for TRD. Management has conveyed a bullish stance on the conduct of this trial, emphasizing measures taken to ensure its integrity and success.