Definium Therapeutics (DFTX) stock surged on Monday after the clinical-stage biopharmaceutical company praised an Executive Order from President Donald Trump focused on researching new ways to treat mental health. The Executive Order highlighted the potential of psychedelic drugs as a new treatment to help alleviate the effects of mental disorders, including suicide.
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Suicide was a major topic in the Executive Order. It noted that suicide rates increased during the lockdowns to the point they almost matched a previous peak. In addition to that, veteran suicides are an ongoing issue in the U.S., with some 6,000 per year. To address these issues, the Executive Order pushed for changes at the U.S. Food and Drug Administration (FDA) to accelerate the research and use of psychedelic drugs to treat mental disorders.
Rob Barrow, CEO of Definium Therapeutics, said, “We applaud the Administration’s recognition that psychedelic medicines may represent meaningful new treatment options for patients. We are advancing a comprehensive clinical development program for DT120 (lysergide tartrate) for millions of patients living with conditions including generalized anxiety disorder (GAD) and major depressive disorder (MDD).”
Definium Therapeutics Stock Movement Today
Definium Therapeutics stock was up 13.71% in premarket trading on Monday, following a nearly 1% rally on Friday. The shares have soared 69.38% year-to-date and have gained 300.71% over the past 12 months.
Despite today’s Executive Order and Definium Therapeutics’ response, shares of DFTX didn’t see much trading activity. As of this writing, about 146,000 shares have changed hands, compared to a three-month average daily trading volume of about 1.68 million shares.
Is Definium Therapeutics Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Definium Therapeutics is Strong Buy, based on 12 Buy ratings over the past three months. With that comes an average DFTX stock price target of $38.75, representing a potential 70.86% upside for the shares.
