Trump Signs Order to Accelerate Psychedelic Research and Access
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 16 hours ago
0mins
Should l Buy DFTX?
Source: seekingalpha
- Market Reaction: Following President Trump's executive order to accelerate psychedelic research, premarket trading saw Compass Pathways (CMPS) surge 25%, AtaiBeckley (ATAI) jump 22%, and Definium Therapeutics (DFTX) climb 20%, indicating strong market enthusiasm for the renewed policy support.
- Valuation Signal Analysis: Among psychedelic stocks, Cybin (HELP) stands out with an A grade valuation signal, suggesting it is the most attractively priced relative to fundamentals, while GH Research (GHRS) and Compass Pathways (CMPS) received C- and D+ grades, indicating a premium pricing situation.
- Investor Focus: Despite the bullish market sentiment, Definium Therapeutics (DFTX) and AtaiBeckley (ATAI) both carry D- grades, signaling that these stocks are trading at significant premiums to their current fundamentals, prompting investors to exercise caution.
- Industry Outlook: With Trump's order accelerating PTSD research, the potential market for psychedelics is expanding, which could present new growth opportunities for related companies, particularly in the treatment of serious mental illnesses.
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Analyst Views on DFTX
Wall Street analysts forecast DFTX stock price to rise
9 Analyst Rating
9 Buy
0 Hold
0 Sell
Strong Buy
Current: 22.680
Low
20.00
Averages
35.89
High
61.00
Current: 22.680
Low
20.00
Averages
35.89
High
61.00
About DFTX
Definium Therapeutics, Inc., formerly Mind Medicine (MindMed) Inc., is engaged in developing therapeutics intended to solve the underlying causes of psychiatric and neurological disorders and offer patients long-term remission rather than transient symptom reduction. The Company plans to advance DT1201 ODT toward FDA submissions in the two largest psychiatric markets, generalized anxiety disorder (GAD) and major depressive disorder (MDD). Its late-stage pipeline includes four Phase 3 trials, two each for GAD and MDD, anchored by its lead candidate, DT120 ODT, which has received an FDA Breakthrough Therapy Designation for GAD. In parallel, the Company is engaged in advancing its commercial strategy and operational readiness to support a care model and prepare for the launch of DT120 ODT, if approved and marketed. It also continues to advance its early-stage pipeline, having dosed the first patient in a Phase 2a study of DT4023 in adults with autism spectrum disorder (ASD).
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Definium Supports White House Executive Order on Mental Health
- Policy Support: Definium Therapeutics expresses support for the newly signed White House Executive Order aimed at accelerating research and development of innovative treatments for mental illness, highlighting the administration's recognition of unmet treatment needs in serious mental health conditions.
- Clinical Development Plan: The company is advancing a comprehensive clinical development program for DT120 (lysergide tartrate) targeting millions of patients with generalized anxiety disorder and major depressive disorder, aiming to provide new treatment options that enhance patient quality of life.
- FDA Approval Pathway: Definium emphasizes that the FDA's evidence-based approval process is the most effective route for safely translating new therapies into clinical use, ensuring patients have access to these innovative treatments.
- Technological Advantages: DT120 ODT utilizes Catalent's Zydis® ODT fast-dissolve technology, offering faster absorption and reduced gastrointestinal side effects, aimed at improving patient experience and advancing mental health treatment progress.
See More
Trump Signs Executive Order to Accelerate Psychedelic Research
- Research Acceleration Policy: President Trump's executive order aims to expedite research on psychedelics like psilocybin and MDMA, although it does not alter drug scheduling, reflecting a focus on a medical-first framework that may pave the way for future cannabis rescheduling.
- Positive Market Reaction: Following the signing of the order, psychedelic developers like AtaiBeckley saw stock prices rise approximately 25%, indicating a positive market response to the policy shift and growing investor confidence in the psychedelic sector.
- Safety Concerns: The inclusion of ibogaine in the order raises safety concerns due to its potential cardiac risks, despite its applications being studied for PTSD and addiction, highlighting significant barriers to commercialization.
- Industry Outlook: While the psychedelic industry lacks a commercial market, the rise of clinical-stage developers suggests that the executive order provides crucial support for the legitimacy of psychedelics, potentially fostering broader acceptance of plant-based alternative medicines in the future.
See More
White House Psychedelics Executive Order Accelerates Research
- Research Acceleration: The White House's executive order aims to expedite research on psychedelics like psilocybin and MDMA, reinforcing a medical and evidence-based framework without altering their legal status, potentially paving the way for industry legitimization.
- Clinical Trial Expansion: The order directs the FDA to expand clinical trials and 'Right to Try' access for patients with serious mental health conditions, which is expected to enhance patient access to new therapies and drive market potential for psychedelics.
- Positive Market Reaction: Following the order's signing, psychedelic-focused companies like Atai Beckley saw stock prices rise by approximately 25%, indicating a positive market response to the policy shift and potentially attracting more investor interest in this emerging sector.
- Safety Concerns: While the order emphasizes research acceleration, safety issues, particularly regarding ibogaine's cardiac risks, remain significant barriers, and the true value of these substances in the medical field will depend on the effectiveness of future implementations.
See More
AtaiBeckley Price Target Raised to $15 Amid Positive Drug Trial News
- Price Target Increase: Canaccord analyst Sumant Kulkarni raised AtaiBeckley's price target from $14 to $15 while maintaining a 'Buy' rating, indicating strong confidence in the company's future performance.
- Clinical Trial Progress: Atai is preparing for its investigational psychedelic drug BPL-003 to enter late-stage trials this quarter, which is designed for treatment-resistant depression and is expected to significantly enhance the company's market position in this sector.
- Positive Market Reaction: Following President Trump's executive order to expedite psychedelic drug research, AtaiBeckley shares surged 28% on Monday, potentially marking the best single-day gain, reflecting growing optimism in the psychedelic drug industry.
- Analyst Consensus: According to Koyfin data, all 14 analysts covering ATAI rate it 'Buy' or higher, with a 12-month average price target of $13.83, representing a potential upside of about 166% from current trading levels.
See More
Trump's Executive Order Boosts Psychedelic Stocks Rally
- Policy Catalyst: President Trump's executive order mandates the FDA to prioritize breakthrough therapy drugs, which is expected to accelerate the regulatory approval process for psychedelics, thereby enhancing commercialization pathways and boosting investor confidence in the sector.
- Clinical Trial Support: The order specifically addresses the mental health crisis among veterans, directing the Department of Veterans Affairs to promote participation in clinical trials, which is anticipated to expand the scale of psychedelic drug trials and increase market demand.
- Market Reaction: Compass Pathways saw its stock surge over 35% on Monday, marking its best single-day performance on record, while AtaiBeckley shares climbed more than 25%, reflecting heightened market sentiment and investor confidence in psychedelics.
- Analyst Expectations: Analysts project average price targets implying upside of approximately 169% for AtaiBeckley and 134% for Compass, while Definium's target suggests a potential rise of over 59% in the next year, indicating strong bullish sentiment towards these companies.
See More
Trump Fast-Tracks Approval for Psychedelic Treatments
- Accelerated Approval Process: Trump's order directs the FDA to reduce review times for certain psychedelic drugs from 6-10 months to just 1-2 months, significantly enhancing market appeal for psychedelic therapies and facilitating easier capital acquisition for related companies.
- Market Reaction: Following the new policy announcement, stocks of three biotech firms—Compass Pathways, Atai Beckley, and Definium Therapeutics—saw substantial gains on Monday, with Compass Pathways rising approximately 39% and Atai Beckley increasing by 32%, reflecting optimistic market sentiment towards psychedelic treatment prospects.
- Research Funding Support: The new order also allocates $50 million from the Department of Health and Human Services to advance private sector research into psychedelic therapies, providing additional resources for related companies to develop new treatments.
- Historical Return and Market Opportunities: Trump's directive signifies a new era for psychedelic treatments, potentially expediting the reclassification of currently Schedule I psychedelic compounds, and companies that can bring these new therapies to market first are likely to gain a competitive edge.
See More
Definium Supports White House Executive Order on Mental Health
- Policy Support: Definium Therapeutics expresses support for the newly signed White House Executive Order aimed at accelerating research and development of innovative treatments for mental illness, highlighting the administration's recognition of unmet treatment needs in serious mental health conditions.
- Clinical Development Plan: The company is advancing a comprehensive clinical development program for DT120 (lysergide tartrate) targeting millions of patients with generalized anxiety disorder and major depressive disorder, aiming to provide new treatment options that enhance patient quality of life.
- FDA Approval Pathway: Definium emphasizes that the FDA's evidence-based approval process is the most effective route for safely translating new therapies into clinical use, ensuring patients have access to these innovative treatments.
- Technological Advantages: DT120 ODT utilizes Catalent's Zydis® ODT fast-dissolve technology, offering faster absorption and reduced gastrointestinal side effects, aimed at improving patient experience and advancing mental health treatment progress.
See More
Trump Signs Executive Order to Accelerate Psychedelic Research
- Research Acceleration Policy: President Trump's executive order aims to expedite research on psychedelics like psilocybin and MDMA, although it does not alter drug scheduling, reflecting a focus on a medical-first framework that may pave the way for future cannabis rescheduling.
- Positive Market Reaction: Following the signing of the order, psychedelic developers like AtaiBeckley saw stock prices rise approximately 25%, indicating a positive market response to the policy shift and growing investor confidence in the psychedelic sector.
- Safety Concerns: The inclusion of ibogaine in the order raises safety concerns due to its potential cardiac risks, despite its applications being studied for PTSD and addiction, highlighting significant barriers to commercialization.
- Industry Outlook: While the psychedelic industry lacks a commercial market, the rise of clinical-stage developers suggests that the executive order provides crucial support for the legitimacy of psychedelics, potentially fostering broader acceptance of plant-based alternative medicines in the future.
See More
White House Psychedelics Executive Order Accelerates Research
- Research Acceleration: The White House's executive order aims to expedite research on psychedelics like psilocybin and MDMA, reinforcing a medical and evidence-based framework without altering their legal status, potentially paving the way for industry legitimization.
- Clinical Trial Expansion: The order directs the FDA to expand clinical trials and 'Right to Try' access for patients with serious mental health conditions, which is expected to enhance patient access to new therapies and drive market potential for psychedelics.
- Positive Market Reaction: Following the order's signing, psychedelic-focused companies like Atai Beckley saw stock prices rise by approximately 25%, indicating a positive market response to the policy shift and potentially attracting more investor interest in this emerging sector.
- Safety Concerns: While the order emphasizes research acceleration, safety issues, particularly regarding ibogaine's cardiac risks, remain significant barriers, and the true value of these substances in the medical field will depend on the effectiveness of future implementations.
See More
AtaiBeckley Price Target Raised to $15 Amid Positive Drug Trial News
- Price Target Increase: Canaccord analyst Sumant Kulkarni raised AtaiBeckley's price target from $14 to $15 while maintaining a 'Buy' rating, indicating strong confidence in the company's future performance.
- Clinical Trial Progress: Atai is preparing for its investigational psychedelic drug BPL-003 to enter late-stage trials this quarter, which is designed for treatment-resistant depression and is expected to significantly enhance the company's market position in this sector.
- Positive Market Reaction: Following President Trump's executive order to expedite psychedelic drug research, AtaiBeckley shares surged 28% on Monday, potentially marking the best single-day gain, reflecting growing optimism in the psychedelic drug industry.
- Analyst Consensus: According to Koyfin data, all 14 analysts covering ATAI rate it 'Buy' or higher, with a 12-month average price target of $13.83, representing a potential upside of about 166% from current trading levels.
See More
Trump's Executive Order Boosts Psychedelic Stocks Rally
- Policy Catalyst: President Trump's executive order mandates the FDA to prioritize breakthrough therapy drugs, which is expected to accelerate the regulatory approval process for psychedelics, thereby enhancing commercialization pathways and boosting investor confidence in the sector.
- Clinical Trial Support: The order specifically addresses the mental health crisis among veterans, directing the Department of Veterans Affairs to promote participation in clinical trials, which is anticipated to expand the scale of psychedelic drug trials and increase market demand.
- Market Reaction: Compass Pathways saw its stock surge over 35% on Monday, marking its best single-day performance on record, while AtaiBeckley shares climbed more than 25%, reflecting heightened market sentiment and investor confidence in psychedelics.
- Analyst Expectations: Analysts project average price targets implying upside of approximately 169% for AtaiBeckley and 134% for Compass, while Definium's target suggests a potential rise of over 59% in the next year, indicating strong bullish sentiment towards these companies.
See More
Trump Fast-Tracks Approval for Psychedelic Treatments
- Accelerated Approval Process: Trump's order directs the FDA to reduce review times for certain psychedelic drugs from 6-10 months to just 1-2 months, significantly enhancing market appeal for psychedelic therapies and facilitating easier capital acquisition for related companies.
- Market Reaction: Following the new policy announcement, stocks of three biotech firms—Compass Pathways, Atai Beckley, and Definium Therapeutics—saw substantial gains on Monday, with Compass Pathways rising approximately 39% and Atai Beckley increasing by 32%, reflecting optimistic market sentiment towards psychedelic treatment prospects.
- Research Funding Support: The new order also allocates $50 million from the Department of Health and Human Services to advance private sector research into psychedelic therapies, providing additional resources for related companies to develop new treatments.
- Historical Return and Market Opportunities: Trump's directive signifies a new era for psychedelic treatments, potentially expediting the reclassification of currently Schedule I psychedelic compounds, and companies that can bring these new therapies to market first are likely to gain a competitive edge.
See More
