HC Wainwright & Co has started coverage on psychedelics firm Mindset Pharma Inc (CSE:MSET, OTCQB:MSSTF) with a 'Buy' rating and a C$5 price target.
The Canadian company is advancing psychedelic-based treatments using a rigorous scientific process through clinical trials. The company has identified more than 100 New Chemical Entities (NCEs) across four "families" in pre-clinical development.
In a report, the research group wrote that Toronto-based Mindset was “pioneering the next generation of psychedelic-enhanced therapies".
READ: Mindset Pharma ends its first full fiscal year with $6.6M in cash to advance novel psychedelic portfolio
HC Wainwright analysts zeroed in on MSP-1014, Mindset’s lead drug candidate, saying it could have improved pharmacology compared to psilocybin and emerge as a novel therapy for mood disorders.
“MSP-1014 could be disruptive as treatment for end of life cancer angst, a potential blockbuster indication,” analysts wrote.
“(We) view the potential of classic psychedelics and analogs of these psychedelics as having strong potential in end of life cancer angst, an indication we estimate could generate annual revenues of $1B-plus globally, and we believe MSP-1014 is well-positioned as a potential next generation psychedelic therapy in this area.”
Analysts highlighted Mindset’s eight provisional patent applications to-date, including four final PCT applications, which cover a broad range of novel, next generation drugs inspired by psychedelics, and a novel psilocybin synthesis and manufacturing method.
“Importantly, we believe Phase 2b trial data from COMPASS Pathways on COMP360, an oral form of psilocybin, could be a key near-term catalyst for Mindset, particularly as investors may then evaluate Mindset's IP positioning and pipeline, which is on track to generate initial platform-validating data in 2H22,” analysts wrote.
“For these reasons, we initiate coverage on Mindset Pharma with a Buy and $5 price target.”
Shares of Mindset were trading at C$0.81 on the Canadian Securities Exchange at midday Wednesday.
Contact Angela at angela@proactiveinvestors.com
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