Why Did COMPASS Pathways Plunge 28.08% Despite Positive Trial Results?

On June 23, 2025, COMPASS Pathways experienced a significant drop of 28.08% in pre-market trading, marking a notable decline in its stock performance.

This decline comes amidst a series of developments in the psychedelic therapeutics sector. COMPASS Pathways recently announced the successful achievement of the primary endpoint in its first Phase 3 trial evaluating COMP360 psilocybin for treatment-resistant depression. The trial demonstrated a statistically significant and clinically meaningful reduction in symptom severity as measured by the Montgomery-Asberg Depression Rating Scale (MADRS). The Independent Data Safety Monitoring Board (DSMB) reviewed the safety data and found no unexpected safety findings, indicating a positive outlook for the drug's safety profile.

Additionally, the company's ongoing pivotal Phase 3 trial continues to progress, which could further influence investor sentiment and stock performance in the coming months. The positive results from the Phase 3 trial are expected to bolster COMPASS Pathways' position in the psychedelic therapeutics market, potentially mitigating the impact of the recent stock decline.