Atai Life Sciences, Inc.: A Struggle with Complexity or Opportunity to Advance in 2021?

(Disclaimer: These articles are merely informational in nature, and in no way should be considered expert financial advice. As with any investment, psilocybin stocks, especially those owned by newer companies, are subject to significant fluctuations in value. Therefore, caution should always be observed when investing.)

Today’s Psychedelic Stock Spotlight: Atai Life Sciences, Inc. (NASDAQ:ATAI) 

Risk Profile: High Risk/High Reward

Another potential heavy hitter has entered the psychedelic pharmaceutical sparring ring. With its Initial Public Offering (IPO) made available on June 18, 2021, ($19.45/share), Atai Life Sciences, Inc., (ATAI)has declared its mission as “pioneering the development of highly effective mental health treatments that address the unmet needs of patients.” 

ATAI: Diversity or Complexity?

Backed by heavyweight investor Peter Thiel, Atai sold 15 million shares at $15, raising $225 million on its IPO. Currently priced at $18.33/share, the Germany based company has a multiple therapeutics testing pipelines in various phases of production, including:

  • PCN-101 /R-ketamine (treatment-resistant depression)
  • RL-007 /Compound3 (cognitive impairment associated with schizophrenia)
  • DMX-1002 /Ibogaine (opioid use disorder)
  • GRX-917 /Deuterated etifoxine (generalized anxiety disorder)
  • NN-101 / N-acetylcysteine (mild traumatic brain injury)
  • VLS-01 /DMT (Treatment Resistant Depression)
  • EMP-01 /MDMA derivative (post traumatic stress disorder)

Yet, so many irons in the fire may make it difficult for an investor to keep track of all the moving parts. Hence the following comment from “If Buffet is right to say we should avoid investments we can’t easily understand, then ATAI Life Sciences belongs in the circular filing cabinet.” 

ATAI: A Viable investment?

Given its brief existence thus far, ATAI is difficult to forecast with regard to its shelf life as an investor. And much like other psychedelic stocks, ATAI is volatile, especially in the short term arena. As is typical with startups, initial profitability is a challenge. The company recently issued a statement declaring that it “will continue to incur significant losses for the foreseeable future” according to

In fact, ATAI has a Operating Margin (ttm) of -419.55%,  a Revenue (ttm) of 19.88M, and Net Income Avi to Common (ttm) -185.46M, which might give would-be investors a bit of a pause. 

On the other hand, the website had a rosier interpretation: “ATAI stock could be the biggest psychedelic stock opportunity on the Nasdaq to date. This trend will continue to grow with further research into psychedelics for mental health treatment. Right now, it’s just the beginning.”

At nearly $18 a share, ATAI may not be a beginning for an investor looking to leverage limited investment opportunities. However, consider that Atai Life Sciences, Inc is also invested in Compass Pathways Inc. (CMPS) which has shown signs of life in the month of June, and is currently selling for $36.70/share. 



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