On Monday, Ascendiant Capital initiated coverage on NASDAQ:MIRA, MIRA Pharmaceuticals Inc. stock, with a Buy rating and a price target of $11.00.
The firm highlighted MIRA Pharmaceuticals' focus on developing neuroscience programs aimed at treating a broad spectrum of neurologic and neuropsychiatric disorders.
MIRA Pharmaceuticals, based in Miami, FL, is currently in the pre-clinical stage and is working on two main programs. The company has secured exclusive license rights in the U.S., Canada, and Mexico for Ketamir-2. This novel oral ketamine analog is under investigation for its potential to provide ultra-rapid antidepressant effects.
It offers hope for individuals suffering from treatment-resistant depression (TRD), major depressive disorder with suicidal ideation (MDSI), and post-traumatic stress disorder (PTSD). Ketamir-2 stands out due to its predicted good gastrointestinal bioavailability.
Additionally, the company is developing MIRA-55, an oral synthetic marijuana analog molecule. MIRA-55 is being studied for its potential to relieve neuropathic pain, as well as symptoms of anxiety and cognitive decline, which are often associated with early-stage dementia.
The molecule aims to harness the therapeutic benefits of marijuana and could represent a significant advancement in the treatment of neuropsychiatric, inflammatory, and neurologic diseases and disorders.
Ascendiant Capital's positive outlook on MIRA Pharmaceuticals is based on the company's innovative approach to addressing complex mental health conditions. The price target reflects the firm's confidence in the company's future performance and the anticipated success of its product candidates.
In other recent news, Mira Pharmaceuticals is facing the possibility of delisting from the Nasdaq Capital Market, but has been granted a grace period to regain compliance.
The company is also advancing its preclinical studies on two investigational drugs, MIRA-55 and Ketamir-2. MIRA-55, cleared by the U.S. Drug Enforcement Administration for further development, is being researched for neuropathic pain, anxiety, and early-stage dementia treatment.
The company's Chief Financial Officer, Michelle Yanez, has agreed to a reduced annual base salary, while maintaining her role at Mira Pharmaceuticals.
Additionally, the company is in advanced discussions with Memorial Sloan Kettering Cancer Center to initiate a preclinical study on Ketamir-2 for cancer pain and depression treatment.
InvestingPro Insights
InvestingPro data provides a snapshot of MIRA Pharmaceuticals Inc.'s current financial health and market performance. With a market capitalization of $32.07 million, the company's financial standing is modest in the biotech industry. Despite this, MIRA has demonstrated strong returns over the past three months, with a remarkable 196.04% increase, and an impressive six-month price total return of 59.83%. This suggests a growing investor confidence in the company's prospects.
From an InvestingPro perspective, two key insights stand out. Firstly, MIRA holds more cash than debt on its balance sheet, which is a positive indicator of the company's ability to fund its operations and research without relying heavily on external financing. Secondly, the stock is known to trade with high price volatility, which could be attractive for certain investors looking for dynamic trading opportunities, but may also imply higher risk.
The InvestingPro product features several additional tips for MIRA, including its weak gross profit margins and the fact that it does not pay a dividend to shareholders. These insights could be crucial for investors who are considering the company's long-term profitability and cash flow potential. For more detailed analysis, investors can explore the full range of InvestingPro Tips available at https://www.investing.com/pro/MIRA.
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