Bright Minds Biosciences: Encouraging BMB-101 Efficacy, Pipeline Expansion, and Valuation Upside Support Maintained Buy Rating

Analyst Thomas Shrader from BTIG maintained a Buy rating on Bright Minds Biosciences and increased the price target to $147.00 from $72.00.

Thomas Shrader has given his Buy rating due to a combination of factors related to BMB-101’s emerging clinical profile and Bright Minds’ pipeline potential. Early data in absence seizures showed a substantial reduction in seizure frequency in a highly treatment‑resistant population, suggesting the drug is meaningfully active where current antiseizure medications often fail. The absence of clear non‑responders and the expectation of low placebo effects in EEG‑based measurements strengthen confidence that the observed benefit is drug‑driven. While safety will need further characterization, the adverse‑event pattern so far appears manageable and broadly in line with what is typically seen with other agents in this class, especially considering management’s commentary that fatigue and drowsiness rates resemble placebo in many trials.
In developmental and epileptic encephalopathies (DEE), the response profile is consistent with what is known for 5‑HT2C agonists, reinforcing the mechanism and supporting the decision to advance toward pivotal studies in both absence seizures and DEE. Additional upside stems from the extension of BMB‑101 into Prader‑Willi syndrome, where the drug targets a well‑defined dysregulated pathway in an indication with high unmet need and limited effective therapies. Shrader raises his probability‑of‑success and market penetration assumptions for the epilepsy indications, adds PWS to the model with a meaningful contribution, and notes that the company’s cash position supports continued development. Together, these efficacy signals, pipeline expansion, and updated valuation work underpin his decision to maintain a Buy rating on Bright Minds Biosciences.

According to TipRanks, Shrader is a 4-star analyst with an average return of 4.6% and a 39.39% success rate. Shrader covers the Healthcare sector, focusing on stocks such as Gain Therapeutics, Aldeyra Therapeutics, and NRX Pharmaceuticals.