atai Life Sciences (NASDAQ:ATAI, ETR:9VC) shares should move higher on a slew of Phase 2 and 3 data readouts in 2025 from across its pipeline of innovative psychedelic therapies, analysts at Jefferies.
Following the release of atai’s third quarter results earlier this week, the analysts repeated their ‘Buy’ rating on the stock and awarded it a $5 price target, implying upside of 242% from its share price at the time of writing.
In the second quarter of 2025, data is expected from Beckley Psytech’s study of BPL-003 (5-MeO-DMT) in treatment-resistant depression and COMPASS Pathways’ Phase 3 trial of COMP360 (psilocybin) in the same indication.
atai holds a minority stake in both biopharmaceutical firms.
Datasets are expected from five other Phase 2 trials during 2024 and 2025, the analysts noted.
This includes results from atai’s trials of ELE-01 (IV psilocin) in major depressive disorder by the year-end and VLS-01 (buccal film DMT) in treatment-resistant depression by the end of 2025.
“In the next six to 12 months, various Phase II/III datasets could strengthen the notion psychedelics have an important role for hard-to-treat $1 billion-plus central nervous systems disorders (despite the FDA's recent rejection of MDMA),” analysts wrote in a note to clients.
They see the benefit/risk profile of this drug class as “favorably skewed.”
“To us, the risk behind atai's programs is less about whether they are inherently efficacious, but more on whether their drug/dosing profiles turn out to be as intended and how well management can execute in large clinical studies, i.e. controlling for placebo/control arm behaviors and advancing with speed (no shortcuts),” they wrote.
They also noted that regulatory sentiment towards psychedelics may improve under the forthcoming Trump administration, notably should Robert F Kennedy Jr be appointed to drive health policy.