SOTM Update 2025-12-08
By
Today's Stocks on the Move is for PSIL – AdvisorShares Psychedelics ETF and its holdings in MindMend (MNMD), Compass Pathways (CMPS) and Alto Neuroscience (ANRO).
- Recent news: MindMed recently reported Q3 2025 results, highlighting a strong cash position of about $209 million as of September 30, 2025, which together with a completed $259 million equity offering is expected to fund operations into 2028. The company is advancing MM120, its lysergide-based program, through multiple Phase 3 trials for generalized anxiety disorder and major depressive disorder, and plans a Phase 2a trial for MM402 in autism spectrum disorder in 4Q 2025, setting up multiple pivotal readouts in 2026.
- Why it matters for PSIL: MNMD gives PSIL scaled exposure to late-stage psychedelic-assisted therapies with clear regulatory paths and substantial financing runway, balancing high scientific risk with meaningful commercialization potential in anxiety and depression.
- Recent news: COMPASS Pathways is advancing COMP360, its psilocybin-based treatment for treatment-resistant depression, through two Phase 3 trials and has already reported a positive primary endpoint in the first study. The company recently accelerated commercialization plans by 9–12 months following favorable FDA interactions, while institutional investors such as Schroders and HSBC have disclosed sizable new positions as the stock trades higher and analysts maintain a “Moderate Buy” rating with multiple price target increases.
- Why it matters for PSIL: CMPS is one of the most advanced pure-play psychedelic developers, so PSIL’s significant weight captures potential upside from the first large-scale psilocybin therapy to reach market in TRD, a high-unmet-need indication.
- Recent news: Alto Neuroscience reported Q3 2025 results and outlined a busy clinical agenda, including an FDA-cleared path to start a potentially pivotal Phase 2b trial of ALTO-207 for treatment-resistant depression in 1H 2026 and plans for a Phase 3 as early as 2027. The company also secured Fast Track designation for ALTO-101 in cognitive impairment associated with schizophrenia and maintains a strong cash position expected to fund operations into 2028 and support four upcoming readouts, following a $50 million private placement.
- Why it matters for PSIL: ANRO broadens PSIL’s exposure beyond classic psychedelics into precision neuropsychiatry, using biomarkers and AI-driven tools to match patients to novel CNS drugs, which can smooth portfolio risk while preserving significant upside from multiple late-stage catalysts.
Data as of 12/5/2025. Holdings subject to change. For a list of PSIL's holdings, click here.
|
— For Institutional Investor Use Only. Not for Public Distribution —
Before investing you should carefully consider the Fund’s investment objectives, risks, charges and expenses. This and other information is in the prospectus and summary prospectus, a copy of which may be obtained by visiting the Fund’s website at www.AdvisorShares.com. Please read the prospectus carefully before you invest. Foreside Fund Services, LLC, distributor.
There is no guarantee that the Fund will achieve its investment objective. An investment in the Fund is subject to risk, including the possible loss of principal amount invested. Psychedelic drugs, also known as hallucinogens, are a group of substances, including psilocybin, that are used to change and enhance sensory perceptions, thought processes, and energy levels. Psychedelic medicines, therapeutics, and healthcare treatments may be used in the treatment of illnesses such as depression, addiction, anxiety and post-traumatic stress disorder. Psychedelic medicine companies include life sciences companies having significant business activities in, or significant exposure to, the psychedelics industry including producers or distributors of psychedelic medicines, biotechnology companies engaged in research and development of psychedelic medicines, and companies that are part of the supply chain for psychedelics. Psychedelics Companies Risk. Psychedelics companies are subject to various laws and regulations that may differ at the state/local and federal level. These laws and regulations may significantly affect a psychedelics company’s ability to secure financing, impact the market for psychedelics and business sales and services, and set limitations on psychedelics use, production, transportation, and storage. There can be no guarantees that such approvals or administrative actions will happen or be favorable for psychedelics companies, and such actions may be subject to lengthy delays, and may require length and expensive clinical trials. Additionally, therapies containing controlled substances may generate public controversy. Political and social pressures and adverse publicity could lead to delays in approval of, and increased expenses for, companies and any future therapeutic candidates they may develop. All of these factors and others may prevent psychedelics companies from becoming profitable, which may materially affect the value of certain Fund investments. In addition, psychedelics are subject to the risks associated with the biotechnology and pharmaceutical industries. In Canada, certain psychedelic drugs, including psilocybin, are classified as Schedule III drugs under the Controlled Drugs and Substances Act (“CDSA”) and, as such, medical and recreational use is illegal under Canadian federal laws. In the United States, certain psychedelic drugs, including psilocybin, are classified as Schedule I drugs under the Controlled Substances Act (“CSA”) and the Controlled Substances Import and Export Act (the “CSIEA”) and, as such, medical and recreational use is illegal under the U.S. federal laws. There is no guarantee that psychedelic drugs or psychedelic-inspired drugs will ever be approved as medicines in either jurisdiction. In the United States, scheduling determinations by the Drug Enforcement Agency (“DEA”) are dependent on Food and Drug Administration (“FDA”) approval of a substance or a specific formulation of a substance. Unless and until psilocybin, psilocin, or other psychedelics-based products receive FDA approval, such products may be prohibited from sale, which could limit the growth opportunities for certain portfolio companies of the Fund. Even if approved by the FDA, the manufacture, importation, exportation, domestic distribution, storage, sale, and legitimate use of such products will continue to be subject to a significant degree of regulation by the DEA. Security prices of small cap companies may be more volatile than those of larger companies and therefore the Fund’s share price may be more volatile than those of funds that invest a larger percentage of their assets in securities issued by larger-cap companies. These risks are even greater for micro-cap companies. AIL-850281-2025-12-08 |
