Canada's Largest Bank Sees 60% Upside In This Psychedelic Stock
MindMed (Nasdaq: MNMD) (NEO: MMED) (DE: MMQ) (the “Company”) is an industry-leading biotech company engineering psychedelic-inspired therapies. The company is developing a combinatorial approach to treating mental illnesses with hallucinogenic (e.g., LSD) and non-hallucinogenic (aka “microdosing”) therapies in clinical settings. MindMed's core philosophy is that a coordinated effort between therapists, drug developers, and patients is needed to develop personalized, precision treatments on a patient-by-patient basis.
Pipeline
The company has multiple drug assets spanning classic psychedelic molecules (such as psilocybin and DMT), 2nd generation psychedelic variants with enhanced pharmacology, and 3rd generation new chemical entities (NCEs) that leverage the core mechanism of action of classic psychedelics but have enhanced functionality. These developmental assets are being pursued into clinical trials against indications such as General Anxiety Disorder (GAD), substance abuse, autism, Major Depressive Disorder (MDD), and cluster headaches. MindMed is leading the development of LSD as a treatment for anxiety disorders with their ongoing Phase 2b study.
Clinical efficacy
MM-120 (LSD analog)
MM-402 (MDMA analog)
Upcoming catalysts
- MM-120 Phase 2b (GAD) readout late 2023
- MM-120 Phase 2a (ADHD) readout late 2023
- MM-402 Phase 1 study to initiate in 2023
Daily (MNMD)
MNMD is deeply oversold, at important support, and currently trading ~20% below its Book Value per share. This morning, RBC Capital analyst Brian Abrahams reiterated an Outperform rating and $5 price target on Mind Medicine shares. The upcoming Phase 2a and Phase 2b readouts for lead drug candidate MM-120 will force a re-rating of this stock. We added to our MNMD long position this week in light of the deep discount to what we believe to be the intrinsic value of the company and the strong chart support near $3 per share.
MindMed has expected cash runway through clinical readouts into 2025.
Mind Medicine is participating in two investor conferences on Monday afternoon:
- Oppenheimer 33rd Annual Healthcare Conference
- Format: Investor Presentation
- Date and Time: Monday, March 13, 2023 at 2:00 pm EST
- Webcast Link: Oppenheimer 33rd Annual Healthcare Conference
- 35th Annual Roth Conference
- Format: Fireside Chat
- Date and Time: Monday, March 13, 2023 at 2:30 pm PST/5:30 pm EST
- Webcast Link: 35th Annual Roth Conference
Disclosure
Author owns shares of MindMed at the time of publishing and may choose to buy or sell at any time without notice.
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