Institutional analysts are taking a liking to the industry of medicinal psychedelics. This week, investment bank Maxim Group initiated coverage of companies in the psychedelics space, giving a bullish Buy rating to all 10.
- Compass Pathways plc (NASDAQ: CMPS)
- Cybin Inc. (OTCQB: CLXPF)
- Enveric Biosciences Inc. (NASDAQ: ENVB)
- Field Trip Health Ltd. (OTCQX: FTRPF)
- Mind Cure Health (OTCQB: MCURF)
- Mind Medicine (MindMed) Inc. (NASDAQ: MNMD)
- Mindset Pharma Inc. (OTCQB: MSSTF)
- Mydecine Innovations Group (OTCPINK: MYCOF)
- PharmaTher Holdings Ltd. (OTCQB: PHRRF)
- PsyBio Therapeutics Corp. (OTCPINK: PSYBF)
12-Month Target Price: $70.00
Tuesday closing price: $37.70
Maxim analysts are bullish on Compass as a first mover in the space of psilocybin and psychedelics in general. They highlight an impressive market opportunity in the treatment of treatment-resistant depression where the company is developing its proprietary version of psilocybin: COMP360.
The report notes strong IP protection, stating that “when it comes to psilocybin, there may be IP issues around the space for basically everyone but Compass.” If Compass is able to achieve FDA approval of psilocybin (a race only contested by nonprofit Usona Institute), it would obtain 5 to 10 years of exclusivity, protecting its initial market.
On Monday, Compass completed the administration of psilocybin to all 216 target patients of its phase 2b trial on COMP360.
12-Month Target Price: $5
Tuesday closing price: $2.07
Maxim likes Cybin’s CYB001, “currently the only sublingual film formulation of psilocybin in clinical development, for major depressive disorder.”
The firm puts Cybin as one of the most advanced companies in the research pipeline for psilocybin. With CYB001, Cybin could improve psilocybin treatment with faster onset, shorter treatment duration and a lower effective dose.
Additionally, the company’s next-generation deuterated tryptamine molecules, CYB003 and CYB004, which are aimed at anxiety disorders, could “provide greater scalability and produce a more ideal duration of treatment in clinical settings.”
Last week, Stifel placed a price target on Cybin of $12 with a “Speculative Buy” rating.
12-Month Target Price: $6
Tuesday closing price: $2.45
The firm named Enveric Biosciences a unique player in the space, with a broad portfolio in cancer supportive care that uses both cannabinoids and psychedelics. The company entered the psychedelics space in May with the acquisition of MagicMed Industries.
“The MagicMed acquisition brings in a library of hundreds of derivatives of psychedelic compounds – the Psybrary, with 15 patents filed to date, covering more than 100M possible tryptamines, as well as entactogen compounds,” said the report.
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