BofA Securities has initiated coverage on Definium Therapeutics Inc with a buy stock rating and a price target of $75.00. The stock currently trades at $45.28, representing significant upside potential to the analyst target. Definium Therapeutics is a late-stage clinical biopharmaceutical company developing proprietary forms of psychedelic and empathogenic drugs for brain health disorders.
The company’s lead asset, DT120 (LSD), is in pivotal studies for major depressive disorder and generalized anxiety disorder. Recent phase 3 studies for both indications demonstrated best-in-class potential. BofA Securities said DT120 could become a go-to option for patients with severe major depressive disorder and generalized anxiety disorder if the results are replicated in ongoing pivotal studies.
Recent Developments
Definium Therapeutics announced a wider second-quarter loss due to increased spending on late-stage trials and commercial preparations. Despite the financial loss, Definium Therapeutics achieved positive results from its Phase 3 Voyage study of DT120 ODT for generalized anxiety disorder. The study met its primary endpoint and all key secondary efficacy endpoints, showing a significant reduction in Hamilton Anxiety Rating Scale scores.
Following these results, Canaccord Genuity raised its price target for Definium Therapeutics to $64 from $58, maintaining a Buy rating. The firm acted in response to the positive trial data, which showed DT120 improved anxiety scores by 5.4 points at 12 weeks on a placebo-adjusted basis.