On Thursday, H.C. Wainwright adjusted its outlook on MindMed (NASDAQ:MNMD) stock, increasing the price target to $55 from the previous $35 while reaffirming a Buy rating. The revision follows MindMed's announcement of its expanded development plans for its leading drug candidate, MM120.
MM120 is a pharmaceutically optimized form of the psychedelic compound lysergide d-tartrate (LSD), which is now being developed for major depressive disorder (MDD) in addition to the ongoing program for generalized anxiety disorder (GAD).
The analyst from H.C. Wainwright cited the expansion into MDD treatment as a significant positive for MindMed's shareholders. The decision to raise the price target was influenced by incorporating the potential of MM120 in treating MDD into the firm's financial model.
The analyst's note highlighted that MindMed is on track to begin Phase 3 trials for an oral disintegrating tablet (ODT) formulation of MM120 in GAD patients. These trials are expected to commence in the second half of 2024 and the first half of 2025, with results anticipated in 2026.
In addition to the GAD program, MindMed plans to start a registrational Phase 3 trial named EMERGE for MM120 in MDD patients in the first half of 2025. The company anticipates top-line data from this trial to become available in the second half of 2026. The analyst's reiterated Buy rating reflects confidence in the company's strategic direction and the potential of its lead drug candidate.
MindMed's proactive approach in expanding its pipeline to address both GAD and MDD with its MM120 candidate is a strategic move that has been recognized positively by H.C. Wainwright. The firm's updated price target suggests a stronger outlook for MindMed's financial performance, driven by the expanded therapeutic applications of its lead compound.
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