Mind Medicine (MindMed) Inc. (MNMD:NASDAQ) recently announced positive results from its Phase 2b trial of MM120 in generalized anxiety disorder, according to Roth MKM analyst Dr. Jonathan Aschoff in a March 7 research note.
Aschoff highlighted that "analysis of MNMD's Phase 2b MM120 trial in GAD demonstrated that a single dose of the drug was highly durable, being similarly potent at 12 weeks as it was at four weeks, making it a potential game-changing future anxiety therapy, and one that will likely be effective in depression too."
The company also received Breakthrough Therapy Designation (BTD) from the FDA for MM120. Aschoff described this as "a no-brainer decision" given the highly favorable Phase 2b results.
Ashchoff pointed out several key factors that contribute to his bullish outlook on the stock:
- MM120's differentiated durable efficacy.
- MM120's rapid onset of action.
- MM120's differentiated safety profile:
- Patent protectability of MM120's new formulation.
With all of these, Aschoff gave the company a Buy rating and raised its price target from US$25 to US$36, despite the dilution from the company's recent US$175 million equity raise.
He attributed this increase to "the lowering of our DCF discount rate to 25% from 40% due to the impressive and necessary durability of MM120 in GAD"
| Want to be the first to know about interesting Biotechnology / Pharmaceuticals investment ideas? Sign up to receive the FREE Streetwise Reports' newsletter. | Subscribe |
Important Disclosures:
- This article does not constitute investment advice and is not a solicitation for any 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. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.
- 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.
For additional disclosures, please click here.
Disclosures for Roth MKM, Mind Medicine Inc., March 7, 2024
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: Within the last twelve months, ROTH Capital Partners, or an affiliate to ROTH Capital Partners, has received compensation for investment banking services from Mind Medicine (MindMed) Inc.. ROTH makes a market in shares of Mind Medicine (MindMed) Inc. and as such, buys and sells from customers on a principal basis. Shares of Mind Medicine (MindMed) 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 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. Copyright 2024. Member: FINRA/SIPC.
