Renowned hedge fund manager and Wall Street mogul Steve Cohen is showing his confidence in the psychedelic sector.
Cohen’s hedge fund, Point 72, which manages a staggering $26 billion in assets, recently revealed in a new filing that it has acquired more than 18 million shares of Cybin (NYSE: CYBN). This marks Point 72’s first public investment in a company dedicated to psychedelic medicine.
Cybin, a clinical-stage biotech firm, is at the forefront of developing innovative therapeutics derived from psychedelics to address major depressive disorder and anxiety.
The filing states that Point 72 bought 18.95 million shares, giving the firm an 8.1% equity. Should the purchase price be based on the last closing price, the total acquisition tag is projected to be around $6.3 million.
The world of psychedelics is drawing closer to potential FDA approvals, with promising results emerging from the MAPS Phase III trial on MDMA-assisted therapy for PTSD. The involvement of seasoned capital in the psychedelics industry serves as a significant validation, given that it has primarily been driven by retail investors until now.
Cohen has made substantial contributions to psychedelic research through his family foundation, notably standing as one of the largest supporters of the MAPS clinical trials for MDMA. Additionally, Cohen has a distinguished track record as a biotech investor and has actively engaged with companies working on cutting-edge therapeutic drugs and compounds.
Information for this briefing was found via Sedar and The New Money. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.