Compass Pathways CEO eyes FDA green light for psilocybin depression pill

In 2022 Kabir Nath departed a comfortable executive post at an anti-psychotic pharmaceutical company to head Compass Pathways, a startup holding a patent on a synthetic version of psilocybin. The company is completing its FDA submission for COMP360, a pill intended for patients with treatment-resistant depression, and expects a decision by the first half of next year. Compass has recently hired 150 new employees, bolstered its marketing division and relocated to a newly painted office in Jersey City.

If the drug gains approval, it could help an estimated 4 million Americans who do not respond to conventional antidepressants; a rejection could spark a rapid share decline and possible bankruptcy. The stock now trades around $11, up $5 from the previous year, reflecting investor optimism amid a broader psychedelic biotech boom that began after FDA breakthrough designation in 2018. Compass is also preparing a sales force and coordinating with clinicians to deliver the treatment in specialized clinics.