(Reuters) – The U.S. Food and Drug Administration put a clinical hold on Mind Medicine Inc’s application to start testing the psychedelic drug commonly known as LSD in patients with generalized anxiety disorder.
The Canada-based drug developer said on Tuesday the FDA hold was related to its investigational new drug application, which is required to start a mid-stage trial of the drug — lysergic acid diethylamide.
The reason for the hold was not immediately clear. Mind Medicine said more details on the FDA’s decision were expected within 30 days.
The FDA’s move is the latest blow to the psychedelic industry’s attempts to use LSD and other compounds such as psilocybin for therapeutic purposes.
Mind Medicine’s shares fell 10.4% to $1.46 before the bell.
In November, shares of Compass Pathways fell roughly 16% due to safety concerns on its experimental drug COMP360, which uses the psychedelic active compound in ‘magic’ mushrooms, to treat depression.
(Reporting by Manas Mishra in Bengaluru; Editing by Shinjini Ganguli)