Shares’ prices of Atai Life Sciences BV, a German psychedelics drugmaker backed by billionaire investor Peter Thiel, skyrocketed as much as 40 per cent in a stellar Nasdaq debut on Friday, valuing the German biotech firm at $3.19 billion at a time when the US IPO market has been at its strongest in more than half a decade.
In point of fact, Atai Life Sciences BV, the Berlin-headquartered biotech firm that has been performing experimental usage of psychedelics drugs such as psilocybin to treat wide-ranging mental disorders such as depression, anxiety and chronic substance abuse, had raised a stark upsum of $225 million a day earlier at its upsized initial offerings that had sold off 15 million ADSs (American Depository Shares) at $15 apiece.
Nevertheless, the German psychedelics startup had opened up Friday’s US market more than 40 per cent higher than its IPO price of $21 per share, however, pared much of its gains late in the day following Fed’s Bullard’s hawkish comments that seemingly had dragged the entire US equity market down and winded down the day at $16.50 per share after hitting a session-high of $22.91 a share earlier in the day.
German psychedelics start-up Atai valued $3.19bn in Nasdaq debut
Alongside this, founded back in the 2018, the German start-up had backed several start-ups developing psychedelics drugs for therapeutic purposes, while its trademark drug Psilocybin, active ingredient of which was derived from a species of magic mushroom, was found to be as effective as a widely used anti-depressant, escitalopram, sold under the brand names of Cipralex and Lexapro among others, a study conducted by the Centre of psychedelic research at Imperial College London, had unveiled.