Clearmind Medicine (NASDAQ: CMND) stock price was among the best-performing in Wall Street on Thursday. The share jumped by more than 32% and reached a high of $5.37. Still, the penny stock remains in trouble after it crashed by over 94% in the last 12 months. It has plunged by over 98% from its all-time high.
The main reason why the CMND share price surged is that the company announced a positive results from its weight loss and metabolic disorder program. The Israeli company’s product combined the company’s proprietary MEAI, obesity and metabolic disorders and depression, and SciSparc’s Palmitoylethanolamide (PEA). In a statement, the company said:
“Over the past year, we have witnessed an increased demand of medication for weight loss, even though they exhibit severe side effects and have even lead to hospitalization. I believe that our proprietary drug candidate, MEAI, is a potentially better and safer option compared to other weight-loss drugs currently on the market.”
Clearmind Medicine is a biotech company aiming to disrupt the fast-growing industry of weight loss drugs that is being dominated by the likes of Eli Lilly and Novo Nordisk. These companies have come up with products like Ozempic, Wegovy, and Mounjaro. These drugs have become so popular, with Ozempic expected to make over $12.5 billion this year.
Therefore, most analysts believe that Clearmind Medicine faces a tough path ahead because of the strong barriers to entry. In addition to Eli Lilly and Novo Nordisk, other companies like Pfizer and AstraZeneca are developing competing products.
ClearMind is a relatively small company that is fighting for survival. It has a market cap of just $1.85 million and is struggling to support its NASDAQ listing. It recently made a share split that enabled its stock to remain above $1.
Clearmind Medicine has also diluted its shareholders in the past few months. Its outstanding shares have jumped from less than 50k in 2021 to over 237k today. Also, while its balance sheet has over $4 million in cash, it is also burning a lot of money every quarter. It had a net loss of over $0.6 million in the June quarter.
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