Connect with us

Public Companies

Coverage Initiated on Developer of Psychedelic Drugs for PTSD, Smoking Cessation

Source: Streetwise Reports   06/30/2021

The investment thesis for Mydecine Innovations Group is presented in a ROTH Capital Partners report.In…

Published

on

Source: Streetwise Reports   06/30/2021

The investment thesis for Mydecine Innovations Group is presented in a ROTH Capital Partners report.

In a June 22 research note, analyst Elemer Piros reported that ROTH Capital Partners initiated coverage on Mydecine Innovations Group Inc. (MYCO:NEO; MYCOF:OTCMKTS; 0NFA:FSE) with a Buy rating and a CA$3 per share target price. Its current share price is about CA$0.38.

Piros explained the rationale behind ROTH's Buy recommendation on Mydecine, formerly named NewLeaf Brands.

First, the concept and objectives Mydecine is pursuing are innovative and, thus, differentiate it from other biopharmaceutical firms, Piros highlighted. This Vancouver-based company is developing alternative medicines based on natural sources, such as psilocybins, for the treatment of mental health problems, Piros explained.

In doing so, Mydecine is pursuing an end the biopharmaceutical industry generally has avoided to date despite the longstanding existence of the idea, wrote Piros. For instance, academics have researched the use of psychedelic drugs as mental health therapeutics for 70 years.

"Mydecine is the first to treat post-traumatic stress disorder (PTSD) and smoking cessation with the natural form of psilocybin (MYCO-001)," Piros highlighted. Few treatment options exist for these medical indications.

Mydecine aims to modify psychedelic drugs to reduce the side effects of the MDMA component and shorten treatment time, Piros pointed out. Also, the company also is investigating the use of psychedelic drugs as a complement to psychotherapy, specifically for use on an infrequent basis, perhaps even only once.

"The combined approach is unprecedented from the medicinal and regulatory perspective," Piros wrote.

Second, Mydecine has potential stock-moving catalysts on the horizon, noted Piros. The next one, in Q4/21, is its investigational new drug meeting with the U.S. Food and Drug Administration (FDA). Subsequently, in Q1/22, the biopharma plans to begin two clinical trials of MYCO-001, a Phase 2 in smoking cessation and a Phase 2/3 in PTSD. Should those commence then, the former could be completed in Q1/23 and the latter in Q4/23.

Third, Piros purported, MYCO-001 has blockbuster potential in both indications. It could be commercially launched in the U.S. for smoking cessation in 2026 and, with only a 0.5% market penetration, could generate about $2.5 billion in sales by 2031, ROTH estimates. For PTSD, MYCO-001 could be debuted in the U.S. in 2027 and, with just a 20% market share, could reach about $3 billion in sales in five years' time.

Sign up for our FREE newsletter at: www.streetwisereports.com/get-news

Disclosure:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.
6) This article does not constitute medical advice. Officers, employees and contributors to Streetwise Reports are not licensed medical professionals. Readers should always contact their healthcare professionals for medical advice.

Disclosures from ROTH Capital Partners, Mydecine Innovations Group Inc., Company Note, June 22, 2021

Regulation Analyst Certification ("Reg AC"): The research analyst primarily responsible for the content of this report certifies the following under Reg AC: I hereby certify that all views expressed in this report accurately reflect my personal views about the subject company or companies and its or their securities. I also certify that no part of my compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in this report.

Shares of Cybin Inc. may not be eligible for sale in one or more states.
Shares of Cybin Inc. may be subject to the Securities and Exchange Commission's Penny Stock Rules, which may set forth sales practice requirements for certain low-priced securities.
ROTH makes a market in shares of COMPASS Pathways plc and as such, buys and sells from customers on a principal basis.

ROTH Capital Partners, LLC expects to receive or intends to seek compensation for investment banking or other business relationships with the covered companies mentioned in this report in the next three months.

( Companies Mentioned: MYCO:NEO; MYCOF:OTCMKTS; 0NFA:FSE, )

Read More

Trending