Mind Medicine (MindMed) Inc. (MNMD) Stock Analysis and Metrics

Sector: Healthcare Industry: Biotechnology CIK: 0001813814

P/B 8.20

P/E -6.37

P/S 0.00

Market Cap 1.07 Bn

ROIC (Qtr) -76.06

Div Yield % 0.00

Rev 1y % (Qtr) 0.00

Total Debt (Qtr) 40.39 Mn

Debt/Equity (Qtr) 0.31

About

Mind Medicine (MindMed) Inc., or MNMD, is a clinical-stage biopharmaceutical company operating in the brain health disorder treatment industry. The company's primary business activities involve developing novel product candidates for treating various brain health disorders, leveraging a growing body of research supporting the use of novel psychoactive compounds. MindMed operates in multiple countries, including the United States, Switzerland, and Germany, primarily through external collaborations. The company generates revenue through advancing...

Mind Medicine (MindMed) Inc., or MNMD, is a clinical-stage biopharmaceutical company operating in the brain health disorder treatment industry. The company's primary business activities involve developing novel product candidates for treating various brain health disorders, leveraging a growing body of research supporting the use of novel psychoactive compounds. MindMed operates in multiple countries, including the United States, Switzerland, and Germany, primarily through external collaborations.

The company generates revenue through advancing its clinical pipeline, submitting new drug applications (NDAs) to the FDA, and commercializing any product candidates that receive regulatory approval. MindMed's lead product candidates include MM120, a proprietary, pharmaceutically optimized form of lysergide D-tartrate being developed for the treatment of generalized anxiety disorder (GAD) and other brain health disorders, and MM402, or R(-)-MDMA, a proprietary form of the R-enantiomer of 3,4-methylenedioxymethamphetamine (MDMA) being developed for the treatment of autism spectrum disorder (ASD).

MindMed holds a competitive advantage in the industry through its strategic focus on developing novel product candidates and its strong pipeline of product candidates, including MM120 and MM402. The biopharmaceutical industry is highly competitive, with many public and private companies, universities, governmental agencies, and other research organizations actively engaged in research and development. Established pharmaceutical companies, as well as smaller biotechnology companies and research organizations, pose competition for MindMed.

Government regulations play a significant role in the development and commercialization of MindMed's product candidates. The company must comply with various federal, state, and local laws and regulations, including the Federal Food, Drug, and Cosmetic Act (FDCA) and the Code of Federal Regulations (CFR), which regulate the development, testing, manufacture, and marketing of drug products.

MindMed's product candidates must be approved by the FDA through the new drug application (NDA) process before they may be legally marketed in the United States. The company must also comply with good manufacturing practices (GMP) and good clinical practices (GCP) to ensure the quality and safety of its product candidates.

Brand names and/or trade names of MindMed's product candidates include MM120 and MM402. MM120 is a proprietary, pharmaceutically optimized form of lysergide D-tartrate being developed for the treatment of generalized anxiety disorder (GAD) and other brain health disorders, while MM402, or R(-)-MDMA, is a proprietary form of the R-enantiomer of 3,4-methylenedioxymethamphetamine (MDMA) being developed for the treatment of autism spectrum disorder (ASD).

Stock Price Chart

Analysis

Pros

Strong tangible asset base of 217M provides 5.37x coverage of total debt 40.38M, indicating robust asset backing and low credit risk.
Short-term investments of 189.11M provide solid 3.30x coverage of other current liabilities 57.30M, indicating strong liquidity.
Cash reserves of 19.96M provide solid 38.46x coverage of other non-current liabilities 519000, indicating strong liquidity.
Short-term investments of 189.11M provide healthy 1.26x coverage of working capital 150.43M, indicating strong liquidity.
Robust R&D investment of 105.90M at 2.34x of SG&A 45.29M demonstrates strong commitment to innovation and future growth.

Cons

Operating cash flow of (113.94M) barely covers its investment activities of (186.59M), with a coverage ratio of 0.61, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
Investment activities of (186.59M) provide weak support for R&D spending of 105.90M, which is -1.76x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
Short-term investments of 189.11M significantly exceed cash reserves of 19.96M, which is 9.47x, indicating potentially excessive yield-seeking behavior at the expense of liquidity.
The company's operating cash flow of (113.94M) shows concerning coverage of stock compensation expenses of 18.70M, with a -6.09 ratio indicating potential earnings quality issues.
Free cash flow of (113.94M) represents just -5.70x of debt issuance 20M, suggesting concerning reliance on leverage rather than internal cash generation for growth.

Peer Comparison

Companies in the Biotechnology

S.No.	Ticker	Company	Market Cap	P/E	P/S	Total Debt (Qtr)
1	SMMT	Summit Therapeutics Inc.	1,349.40 Bn	-1,464.17	0.00	0.01 Bn
2	ONC	BeOne Medicines Ltd.	437.43 Bn	6,381.20	87.97	1.90 Bn
3	VRTX	Vertex Pharmaceuticals Inc / Ma	116.09 Bn	31.59	9.90	1.83 Bn
4	REGN	Regeneron Pharmaceuticals, Inc.	78.10 Bn	17.06	5.48	2.71 Bn
5	ALNY	Alnylam Pharmaceuticals, Inc.	55.87 Bn	1,282.42	17.40	3.21 Bn
6	ARGX	Argenx Se	52.85 Bn	35.08	27,559.65	-
7	BNTC	Benitec Biopharma Inc.	41.75 Bn	-998.33	0.00	0.00 Bn
8	INSM	INSMED Inc	37.80 Bn	-31.93	84.56	0.74 Bn

Industry Comparisons

Current Valuation

Metric	Value	Industry
EV to Assets	4.55	12.31
EV to Cash from Ops.	-9.47	23.25
EV to Debt	26.71	738.44
EV to EBIT	-6.61	-9.16
EV to EBITDA	-7.13	6.95
EV to Free Cash Flow [EV/FCF]	-9.47	21.90
EV to Market Cap	1.01	65.67
EV to Revenue	0.00	227.32
Price to Book Value [P/B]	8.20	22.34
Price to Earnings [P/E]	-6.37	-11.77

Dividend Metrics

Metric	Value	Industry
Dividend Coverage Ratio	0.00	-11.94
Dividend Payout Ratio %	0.00	0.16
Dividend per Basic Share	0.00	0.01
FCF Dividend Payout Ratio %	0.00	-0.14
Interest Coverage	-33.52	841.00

Growth Metrics

Metric	Value	Industry
Capex Growth (1y) %	0.00	-27.13
Cash and Equivalents Growth (1y) %	-93.24	734.65
Dividend Growth (1y) %	0.00	0.01
EBIAT Growth (1y) %	-70.50	-46.93
EBITDA Growth (1y) %	-63.73	-1.68
EBIT Growth (1y) %	-70.50	-56.45
EBT Growth (1y) %	-71.88	-12.70
EPS Growth (1y) %	1.01	-28.31
FCF Growth (1y) %	-53.26	-31.90
Gross Profit Growth (1y) %	0.00	226.84

Liquidity Ratios

Metric	Value	Industry
Asset Utilization Ratio	0.00	0.14
Cash Payout Ratio	0.00	0.00
Cash Ratio	0.31	3.85
Current Ratio	3.30	7.27
Debt to Equity Ratio	0.31	0.40
Interest Cover Ratio	-33.52	841.00
Times Interest Earned	-33.52	841.00

Profitability

Metric	Value	Industry	Percentile
EBITDA Margin %	0.00	-18,234.31
EBIT Margin %	0.00	-18,580.80
EBT Margin %	0.00	-19,488.74
Gross Margin %	0.00	-7.59
Net Profit Margin %	0.00	-19,439.22

Mind Medicine (MindMed) Inc. (NASDAQ: MNMD)