Psychedelic: Enveric, NRx, Bright Minds report quarterly earnings

In this week’s “Psychedelic,” The Fly’s recurring series focused on psychedelic stock news, The Fly looks back on earnings, the signing of a term sheet and a research agreement . 

PSYCHEDELIC EARNINGS: On Friday, Enveric Biosciences (ENVB) reported a first quarter loss per share of ($1.08), which compared to a loss per share of ($14.58) for the same period last year. As of May 15, the company’s cash balance was approximately $10.3M. Enveric believes these funds will support the completion of preclinical development activities for EB-003, the planned filing of an IND application, and operations into 1Q27. “Our progress in the first quarter of 2026 reflects continued execution against our core mission of developing therapeutics capable of addressing the significant unmet need in mental health,” said Joseph Tucker, CEO. “We remain laser focused on advancing EB-003, Enveric’s lead drug candidate in development, toward an IND submission and first-in-human clinical trials…With IND-enabling activities underway and a strong intellectual property position, we believe Enveric is well positioned to generate meaningful value for stockholders as we transition toward the clinical phase of drug development.”

Additionally on Tuesday, Enveric announced results from preclinical in vitro experiments evaluating the risk for phototoxicity, which indicated no photoreactive potential for EB-003, further derisking its continued development for the chronic treatment of neuropsychiatric disorders. This represents another preclinical safety assessment milestone for Enveric’s neuroplastogen EB-003, a compound designed to selectively engage both 5-HT2A and 5-HT1B receptors. EB-003 is intended to deliver fast-acting, durable antidepressant and anxiolytic effects with outpatient convenience. Phototoxicity testing is mandated by regulatory agencies like the FDA under the ICH S10 guideline and is performed to evaluate whether a novel pharmaceutical compound could become harmful when exposed to UV light.

On Monday, NRx Pharmaceuticals (NRXP) reported a Q1 loss per share of (4c) on net patient service revenue of $1.07M, which compares to a loss per share of (34c) for the same period last year. As of March 31, the company had approximately $6.7M in cash and cash equivalents. Management believes current cash resources, anticipated growth in clinic revenue, ongoing cost reduction initiatives, and continued availability under the company’s active at-the-market offering will be sufficient to support operations through 2026. “The first quarter of 2026 was a pivotal one for NRx, as we advanced two lifesaving drugs towards FDA approval with the aim of initiating commercial pharmaceutical operations by the end of this year. We started the year debt-free, and made targeted investments in several critical strategic operating initiatives that drove substantial progress toward the approval of our first drug product, initiated commercial manufacture in anticipation of drug launch, advanced profitable clinic operations with an expanded footprint, burgeoned our overall intellectual property portfolio, augmented our development pipeline and attracted fundamental long-term investors who believe in our mission,” said CEO Jonathan Javitt. “We are deeply grateful for the trust that has been afforded to us by our patients, their families, and our shareholders.”

On Thursday, Bright Minds Biosciences (DRUG) reported a Q2 loss per share of (C$1.09), which compared to a loss per share of (C$0.42) for the same period last year. At March 31, 2026, the company had working capital of C$308.5M including cash and cash equivalents of C$309.7M. The company’s current and expected cash resources are sufficient to satisfy working capital requirements of running the operations for the following twelve months. Piper Sandler raised the firm’s price target on Bright Minds to $220 from $190 and kept an Overweight rating on the shares. The firm caught up with Bright Minds following earnings, where management reflected confidence in the progress made across programs this past quarter. Piper remains bullish on Bright Minds and expects the stock will continue trading-up throughout the year, driving share-gains.

PHARMALA, JUPITER SIGN TERM SHEET FOR ALA-002 U.S. RIGHTS: PharmAla Biotech Holdings (MDXXF) announced Wednesday that it has entered into a term sheet under which PharmAla would grant Jupiter Neurosciences (JUNS) exclusive, perpetual U.S. licensing rights to ALA-002, PharmAla’s lead drug candidate and a next-generation, non-racemic MDMA novel chemical entity. The total potential value of the proposed transaction is in excess of $100M through a combination of upfront consideration, development milestone payments, and single-digit royalties on net sales. PharmAla would retain all rights to ALA-002 in territories outside of the U.S., including its existing commercial presence through its Cortexa joint venture in Australia. Pursuant to the term sheet, PharmAla would receive upfront consideration of $3.33M at closing of the definitive agreement, comprised of $1.50M in cash and $1.83M in shares of Jupiter common stock, with such shares subject to a 10-day lock-up period. The term sheet additionally provides that further development milestone payments and royalties will be paid to PharmAla as the product is developed, approved, and commercialized in the U.S. Closing of the definitive agreement is to occur no more than 90 days from the execution of the term sheet.

“This proposed transaction is a meaningful validation of the years of scientific, regulatory and manufacturing work PharmAla has invested in building ALA-002 into a credible, next-generation MDMA candidate,” said Nicholas Kadysh, CEO. “Partnering with Jupiter Neurosciences gives ALA-002 a dedicated U.S. development and commercialization home, alongside a CNS-focused team and access to U.S. public capital markets, while PharmAla retains all rights to ALA-002 outside the United States and continues to expand our commercial footprint through Cortexa in Australia and our broader MDXX pipeline globally.”

CLEARMIND, YISSUM ENTER RESEARCH AGREEMENT: Clearmind Medicine (CMND) announced Monday the signing of a new research agreement with Yissum Research Development Company of the Hebrew University of Jerusalem. The agreement will fund a comprehensive preclinical study evaluating the metabolic efficacy of MEAI, both in combination with and as a maintenance therapy following tirzepatide treatment in diet-induced obese mice. The research will be conducted by Professor Joseph Tam and his team at the Obesity and Metabolism Laboratory at the Institute for Drug Research, School of Pharmacy, Hebrew University of Jerusalem.

Building on results from its prior collaboration with Tam’s laboratory, where MEAI demonstrated approximately 15–20% body weight reduction in DIO mice, primarily through increased energy expenditure and fat utilization while preserving lean mass and improving glucose homeostasis and hepatic steatosis, Clearmind is now advancing MEAI into combination and sequencing strategies with incretin therapy. The new 12-month study, titled “Assessing the Metabolic Efficacy of MEAI in Combination and Sequencing with Tirzepatide in Diet-Induced Obese Mice,” will examine additive or synergistic effects when MEAI is administered concomitantly with tirzepatide and the potential of MEAI as a maintenance therapy to attenuate post-tirzepatide weight regain and preserve metabolic benefits across multiple doses.

“MEAI is designed to offer a differentiated mechanism that potentially complements incretin therapies,” said Adi Zuloff-Shani, CEO.  “While those drugs excel at reducing food intake, our previous preclinical data show MEAI significantly enhances energy expenditure. We believe that this combination and maintenance approach has potential to deliver more robust, durable, and clinically meaningful outcomes for patients.”

Additionally on Tuesday, Clearmind announced that it will conduct a reverse share split of its issued and outstanding common shares, no par value, at a ratio of 1-for-10. The reverse split is being effected as part of the company’s plan to regain compliance with the Nasdaq Minimum Bid Price Rule and will be effective commencing May 21.

GH RESEARCH PRICE TARGET CHANGES: H.C. Wainwright lowered the firm’s price target on GH Research (GHRS) to $65 from $70 and kept a Buy rating on the shares. The firm cited share count dilution from the company’s April offering for the target cut.

Cantor Fitzgerald raised the firm’s price target on GH Research to $35 from $25 and kept an Overweight rating on the shares. GH Research is viewed as operating in a large and expanding psychedelic therapy market with significant unmet mental health need, where long-term peak sales across related treatments could reach roughly $50B, the firm said. This supports a constructive demand backdrop despite ongoing uncertainty around competitive dynamics in the space, the analyst said.

Citizens lowered the firm’s price target on GH Research to $39 from $42 and kept an Outperform rating on the shares. GH Research reported continued progress with its GH001 program, reaffirmed plans to begin a pivotal Phase 3 trial in late 2026 following ongoing discussions with the FDA and ended the quarter with approximately $267M in cash, the firm said. The cash balance appears sufficient to fund the global development program, the analyst said.

COMPASS PRICE TARGET RAISE: Maxim raised the firm’s price target on Compass Pathways (CMPS) to $20 from $12 and kept a Buy rating on the shares. Compass Pathways reported Q1 results with an operating loss of ($42.9M) and ended the period with $466M, the analyst said. Compass’s Commissioner’s National Priority Voucher award should accelerate the company’s commercial timelines, driving the firm’s price target increase, the firm added.

OTHER PSYCHEDELIC STOCKS: Publicly-traded companies in the space include Grey Matters Health (AGNPF), AtaiBeckley (ATAI), BetterLife (BETRF), Definium Therapeutics (DFTX), Filament Health (FLHLF), Helus Pharma (HELP), Incannex (IXHL), MIRA Pharmaceuticals (MIRA), Numinus Wellness (NUMIF), Pasithea Therapeutics (KTTA), PharmaTher (PHRRF), Psyence Biomedical (PBM), Psyence Group (PSYGF), Revive Therapeutics (RVVTF), Silo Pharma (SILO) and Sibannac (SNNC).