Psychedelic: Needham initiates coverage of atai, GH Research, MindMed

In this week’s “Psychedelic,” The Fly’s recurring series focused on psychedelic stock news, The Fly looks back on analyst initiations, a patent issuance and a company name change.

NEEDHAM INITIATES ATAI, GH RESEARCH, MINDMED WITH A BUY: Needham initiated coverage of Atai Life Sciences (ATAI) with a Buy rating and $12 price target. The firm believes the company’s BPL-003 could offer greater convenience than Spravato with potentially improved efficacy. BPL-003 is well positioned to leverage logistics established by Spravato and expand the market, taking 20% share by 2035 with over $2.5B in sales, the analyst said. Needham sees Atai Life unlocking value in the psychedelics market.

The firm also initiated coverage of GH Research (GHRS) with a Buy rating and $19 price target. The company’s GH001 demonstrated “impressive efficacy” in Phase 2 and a “potentially game-changing” 73% remission rate at six months with re-treatments, the analyst said. Needham estimates GH001 could be a significant opportunity with sales of $1.9B in U.S. by 2035.

Needham also initiated coverage of Mind Medicine (MNMD) with a Buy rating and $28 price target. The company’s lead asset MM120 is in three Phase 3 trials following “strong” Phase 2 data, the analyst said. The firm added M120’s six-to-eight-hour treatment, along with potential for fewer re-treatments, could drive significant efficiencies in the current paradigm while maintaining attractive economics. A total addressable market of over $12B could drive over $2.5B in sales for MM120 by 2035, contended Needham.

Additionally, LifeSci Capital initiated coverage of Mind Medicine with an Outperform rating and $32 price target.

ENVERIC ISSUED PATENT FOR NEUROPLASTOGENIC COMPOUNDS: Enveric Biosciences (ENVB) announced Thursday the issuance of its 23rd patent from the United States Patent and Trademark Office for novel compounds within its neuroplastogenic patent estate, further expanding its intellectual property assets for the potential treatment of mental health disorders. The patent, U.S. Patent No. 12,428,408, titled, “Fused Heterocyclic Mescaline Derivatives,” covers a unique series of compounds, which are designed to target key serotonin receptors and drive neuroplasticity.

“The issuance of this 23rd U.S. patent in Enveric’s neuroplastogenic patent estate demonstrates Enveric’s continued momentum and commitment to the development of a strong intellectual property portfolio and deep pipeline of next-generation molecules for potential development for the treatment of neuropsychiatric conditions,” said Joseph Tucker, CEO.

Additionally on Wednesday, the company announced it hired Fish and Richardson P.C. (ABBV) agreed to acquire on August 25 in a definitive transaction valued at up to $1.2B. The Gilgamesh PGR petition specifically targets claims that may be relevant to Bretisilocin and other claims of the ‘276 patent.

Meanwhile on Tuesday, Enveric announced that its Board of Directors has authorized the company’s Capital Markets Committee to explore and negotiate non-binding term sheets for potential Digital Asset Treasury strategy opportunities.

ALGERNON COMPLETES NAME CHANGE: On Wednesday, Algernon Pharmaceuticals (AGNPF) announced it completed its previously announced name change to Algernon Health. The name change reflects the company’s recent announcement that it will be focusing on the Alzheimer’s Disease diagnostic market with plans to establish specialized neuroimaging clinics across North America as its lead program. Algernon continues to be the parent company of a private subsidiary called Algernon NeuroScience that has been advancing a psychedelic program investigating a proprietary form of DMT for stroke and traumatic brain injury recovery.

“Our change in name is an important step in the execution of our new health care initiative to establish and operate dedicated neuroimaging clinics for the early-stage detection of Alzheimer’s disease,” said Christopher Moreau, CEO. “It underscores our commitment as an evolving, consumer facing brand providing health care solutions to patients in need.”

OTHER PSYCHEDELIC STOCKS: Publicly-traded companies in the space include BetterLife (BETRF), Bright Minds (DRUG), Clearmind (CMND), Compass Pathways (CMPS), Cybin (CYBN), Filament Health (FLHLF), Incannex (IXHL), MIRA Pharmaceuticals (MIRA), NRx Pharmaceuticals (NRXP), Numinus Wellness (NUMIF), Pasithea Therapeutics (KTTA), PharmAla (MDXXF), PharmaTher (PHRRF), Psyence Biomedical (PBM), Psyence Group (PSYGF), Relmada Therapeutics (RLMD), Revive Therapeutics (RVVTF), SciSparc (SPRC), Seelos Therapeutics (SEEL) and Silo Pharma (SILO).