Mind Medicine (MindMed) Inc.'s (MNMD:NASDAQ) ongoing Phase 2b dose-finding study of its MM-120 (LSD D-tartrate) in generalized anxiety disorder has been derisked by a separate, external, investigator-initiated Phase 2 evaluation of LSD in anxiety, despite different trial designs, purported Oppenheimer & Co. analyst Francois Brisebois in a September 12, 2022 research note.
MindMed's current share price is around $7.99, while Oppenheimer's price target on the psychedelic medicine biotech is about six times that, at $52 per share. This difference implies a significant potential return on investment with this Outperform-rated company.
"We are encouraged by the strength of the data," Brisebois wrote.
MindMed's current share price is around $7.99, while Oppenheimer's price target on the psychedelic medicine biotech is about six times that, at $52 per share. This difference implies a significant potential return on investment with this Outperform-rated company.
The outside trial, results of which were recently published, showed strong efficacy, safety, and durability of LSD in patients with anxiety, Brisebois relayed.
"These results are confirmatory and expand upon previous LSD-related studies," he added.
Topline study data showed the psychedelic significantly reduced patients' anxiety for up to 16 weeks (p=0.007), and crossover trial data showed it had an extended effect up to 50 weeks. Patients exhibited significant reductions in depression and general psychiatric symptoms, too.
Also encouraging, Brisebois noted, patients who received a placebo in the first part of the study showed a reduction in anxiety symptoms in the crossover segment.
The outside trial data also demonstrated statistically significant differences between results with LSD and with placebo at all time points, as measured using anxiety scales.
"Importantly, the overall stronger response and the correlation between acute effects and outcomes are apparent after only one dose, which we view as encouraging given the design of MindMed's single-dose Phase 2b," slated for completion in H2/23, Brisebois wrote.
An upcoming "critical" catalyst for the psychedelic space, indicated Brisebois, expected next month, is the completion of the Multidisciplinary Association for Psychedelic Studies' Phase 3 trial of MDMA in post-traumatic stress disorder, expected October of this year.
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