Compass Pathways Shares Plunge 9.7% Amid Clinical Setbacks, FDA Hurdles

Compass Pathways shares plunged 9.727% in pre-market trading on Nov. 14, 2025, marking one of the most significant declines in its recent history amid mounting investor concerns over clinical trial setbacks and regulatory uncertainties.

The selloff follows a series of underwhelming updates from the psychedelic therapy developer, including delayed Phase 3 trial timelines for its psilocybin-based treatments. Analysts highlighted that the company’s reliance on a narrow product pipeline, coupled with rising competition in the mental health therapeutics sector, has eroded confidence among institutional investors. Additionally, recent FDA guidance emphasizing stricter safety protocols for psychedelic compounds has cast a shadow over Compass’s long-term growth prospects.

Despite the sharp drop, the stock’s technical indicators remain mixed. While the 200-day moving average continues to act as a key support level, the recent volatility has widened the gap between short-term and long-term trend lines, signaling potential for further consolidation in the near term.

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