Atai Life Sciences NV (ATAI:NASDAQ) began testing VLS-01, its buccal formulation of synthetic DMT, or dimethyltryptamine, in the clinic in a Phase 1 trial, reported ROTH Capital Partners analyst, Dr. Elemer Piros, in an October 5, 2022 research note.
Atai offers investors significant potential return, given its current share price is $3.33 and ROTH's target price on it is multiples of that, at $32 per share.
The results will be announced in H1/23.
Also of note, Atai offers investors significant potential return, given its current share price is $3.46 and ROTH's target price on it is multiples of that, at $32 per share.
Piros relayed this Phase 1 trial is comparing Atai's buccal formulation (which goes between a patient's gums and cheek) of the psychedelic DMT, known as VLS-01, to an intravenous version to test the bioavailability of each. The study is randomized, double-blind, and placebo controlled.
"Atai will employ the IDEA-1 digital therapeutic app to provide contextual '(mind)set and setting' prior to dosing, as well as behavioral activation therapy, group therapy, and patient monitoring post-dosing," Piros explained.
Piros pointed out that Atai is not alone in its exploration of various DMT formulations. For instance, the company Small Pharma is testing intravenous DMT in major depressive disorder and plans to investigate intramuscular administration of DMT and deuterated DMT. Also, Cybin intends to study an inhaled form of deuterated DMT.
"Both Small Pharma and Cybin obtained non-overlapping patent protection of their respective versions of deuterated DMT," Piros added.
ROTH has a Buy rating on Atai.
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Disclosures For ROTH Capital Partners, atai Life Sciences N.V. , October 5, 2022
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.
Disclosures: ROTH makes a market in shares of atai Life Sciences N.V. and COMPASS Pathways plc and as such, buys and sells from customers on a principal basis. Shares of atai Life Sciences N.V., Cybin Inc. and Small Pharma 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. Shares of Cybin Inc. may not be eligible for sale in one or more states.
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. The material, information and facts discussed in this report other than the information regarding ROTH Capital Partners, LLC and its affiliates, are from sources believed to be reliable, but are in no way guaranteed to be complete or accurate.
This report should not be used as a complete analysis of the company, industry or security discussed in the report. Additional information is available upon request. This is not, however, an offer or solicitation of the securities discussed. Any opinions or estimates in this report are subject to change without notice. An investment in the stock may involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Additionally, an investment in the stock may involve a high degree of risk and may not be suitable for all investors. No part of this report may be reproduced in any form without the express written permission of ROTH.
