Psilocybin-focused mental health care company COMPASS Pathways plc (NASDAQ:CMPS) revealed Friday that it has been selected for addition to the Nasdaq Biotechnology Index (NASDAQ:NBI), effective as of market open on Monday, Dec. 20.

"We are proud to announce our addition to the esteemed Nasdaq Biotechnology Index," George Goldsmith, CEO and founder of Compass Pathways said. "Our inclusion in this index enables us to reach new audiences as we continue to execute on our clinical development of our investigational COMP360 psilocybin therapy in hopes of addressing the most challenging issues in mental healthcare."

The NBI is designed to track the performance of a set of securities listed on the Nasdaq Stock Market that are classified as either biotechnology or pharmaceutical according to the Industry Classification Benchmark. For this year's annual reconstitution, 120 securities will be added to the Index and 16 will be removed.

The index represents a great tool for index funds and to be used as benchmarks for active investment strategies. It is commonly used both by investment managers and institutional investors. Exchange-traded funds (ETFs) that track the NBI include the ProShares Ultra NASDAQ Biotechnology ETF (NASDAQ:BIB), ProShares UltraShort NASDAQ Biotechnology ETF (NASDAQ:BIS), Invesco NASDAQ Biotech UCITS ETF (NASDAQ:SBIO) and iShares Nasdaq Biotechnology Index Fund (NASDAQ:IBB) and others.

More recent news from COMPASS:

Psilocybin Therapy Combined With SSRI Antidepressants Is Possible, COMPASS Study Confirms

Cannabis Movers & Shakers: Coda Signature, Greater Cannabis Co., BioHarvest Sciences, Compass Pathways

New York City Conference 'Horizons: Perspectives on Psychedelics' A Who's Who Of Notable Speakers

COMPASS Pathways: Positive Psilocybin Trial, High-Dose Group Improves Beyond Depression Reduction

Price Action  

COMPASS shares traded 1.64% higher at $22.87 per share at the time of writing Friday morning.

Photo: Courtesy of Mathew Schwartz on Unsplash