Vistagen downgraded to Hold at Stifel after PALISADE-3 study disappoints

As previously reported, Stifel downgraded Vistagen (VTGN) to Hold from Buy with a price target of $1, down from $12, after the company’s PALISADE-3 study of fasedienol in social anxiety disorder did not meet its primary endpoint. The risk/reward is “highly upside-biased” as the PALISADE-4 study is ongoing and effective psychiatry drugs “do sometimes outright fail,” so the probability of success for P4 is “not zero,” but it is “very hard to have confidence,” the analyst tells investors.