Shares of Seelos Therapeutics (NASDAQ:SEEL) had been leaping 11.4% larger as of 12:28 p.m. EDT on Tuesday. The achieve got here after the corporate introduced that it has been included within the Defiance Subsequent Gen Altered Expertise ETF (NYSEMKT:PSY). That is the primary exchange-traded fund (ETF) centered on psychedelics-related shares listed on a U.S. trade.
It is excellent news any time a small biotech stock is included in an ETF. As buyers purchase the ETF, the fund will purchase extra shares of the person shares that it holds. Nonetheless, it is nonetheless too early to know for certain the complete impression that the inclusion of Seelos within the Defiance Subsequent Gen Altered Expertise ETF can have. This ETF solely started buying and selling on Could 28, 2021.
Nonetheless, the launch of this new ETF ought to assist additional validate the rising psychedelics business. Seelos stands as one of many leaders in psychedelics, with two clinical-stage candidates in its pipeline focusing on 4 indications.
This wasn’t the primary time that Seelos has been included in a psychedelics-focused ETF, although. In January, the corporate introduced that it was one among 17 companies included within the Horizons Psychedelic Inventory Index ETF, which is traded on Canada’s NEO trade.
The principle factor to look at with Seelos is its pipeline progress. Seelos lately introduced constructive outcomes from half 1 of an open-label research evaluating SLS-002 (ketamine) in treating acute suicidal ideation and habits in sufferers with main depressive dysfunction. It is also conducting medical research of SLS-005 (trehalose) in treating neurodegenerative illness amyotrophic lateral sclerosis (ALS), uncommon genetic illness Sanfilippo syndrome, and uncommon genetic muscle dysfunction oculopharyngeal muscular dystrophy (OPMD).
This text represents the opinion of the author, who might disagree with the “official” suggestion place of a Motley Idiot premium advisory service. We’re motley! Questioning an investing thesis — even one among our personal — helps us all assume critically about investing and make choices that assist us develop into smarter, happier, and richer.