health
Psychedelic therapies are becoming mainstream. Deutsche Bank thinks this drug developer could triple
This biopharma play with two key drugs for treatment-resistant depression could see its stock rise by more than 230%, according to a Deutsche Bank analyst.
TL;DR
- Deutsche Bank initiated coverage of AtaiBeckley with a buy rating and a $12 price target, suggesting a potential stock increase of over 250%.
- The bank believes AtaiBeckley is well-positioned to lead in the "Psychedelic Renaissance" for mental health treatments.
- AtaiBeckley is developing BPL-003 and VLS-01, both tryptamine derivatives for treatment-resistant depression, and EMP-01, an MDMA derivative for seasonal affective disorder.
- Analyst David Hoang models potential peak sales for these drugs based on the success of Johnson & Johnson's Spravato, estimating $4 billion for BPL-003 and $2 billion for VLS-01.
- Hoang notes that regulatory hurdles for psychedelic drugs are easing, with expected rescheduling from Schedule I to more accessible schedules upon FDA approval.