Two important stock indexes in the U.K. are going psychedelic. On Monday, Mind Medicine (MNMD 2.57%) announced that its stock will become a component of both the FTSE Global Micro Cap and the FTSE Total Cap Indexes, effective Friday, March 19.
Mind Medicine, or MindMed, is a clinical-stage biotech that concentrates on developing therapies based on psychedelic drugs like LSD and MDMA (better known as Ecstasy). The company has numerous projects in development, including one in which a precisely measured dose of LSD is administered by a therapist to help treat anxiety. That program is currently in front of a phase 2b human efficacy trial.
"Being included in mature and credible indexes like the FTSE Total Cap and FTSE Global Micro-Cap is a true honor," said Mind Medicine CEO J.R. Rahn. "As we build MindMed into a pioneering company for the long-term, our entire team looks forward to the potential positive change we can bring to treating mental health and addiction in the years ahead."
The FTSE indexes are widely considered to be the most important ones on the U.K. market. Fresh inclusion on any of them confers legitimacy on a stock and at a stroke raises its profile. Although this typically has little to no effect on a company's operations, that higher visibility can help improve investor sentiment.
Mind Medicine is a unique company and stock, and while massive rivals such as Johnson & Johnson (JNJ 2.04%) are exploring the therapeutic possibilities of psychedelic substances, it already has quite an extensive pipeline for such a small operator.
On the back of the FTSE news, Mind Medicine shares rose by nearly 1.1% Monday, topping the 0.7% increase of the S&P 500 index.