The renowned investor group at Canaccord Genuity released a bullish report this morning projecting an $80 price target for Peter Thiel-backed Compass Pathways. The UK-based clinical-stage biopharma company recently enjoyed a significant stock surge following the glowing report from Citron research and is continuing to make massive strides.
Read: CMPS Stock Surges More than 20% on the Back of Bullish Citron Research Report
The Revival of Psychedelic Science Strongly Supports the Clinical Use of Psilocybin
The current pandemic has starkly exposed the fact that conditions like treatment-resistant depression (TRD) are becoming a global public health epidemic. An estimated 2-3 million patients in the United States alone suffer with TRD. The team at Compass Pathways is projected to meet a massive unmet need and capitalize on a large market opportunity by combining COMP360 (synthetic psilocybin) with psychological support to radically treat TRD. Psilocybin has garnered significant media attention recently for its profound therapeutic potential. Groundbreaking clinical trials at Johns Hopkins, NYU and The Imperial College of London are discovering the ability of psilocybin to produce rapid and sustainable effects that could lead to positive changes in brain function. The report states there is significant room for more upside as well, particularly due to the durability and favorable side effect of COMP360 compared to traditional treatments.
Compass Pathways Expected To Release Top-Line Data in Late 2021
The team at Compass Pathways is expected to release it’s highly anticipated top-line data on COMP360, a proprietary, high-purity synthetic formulation of psilocybin, in late 2021. It is currently in a Phase 2b trial (with 2016 patients) where it is delivered as a single oral dose with psychological support. The primary endpoint explores the patients’ mean change in MADRS (Montgomery Asberg Depression Rating Scale) from baseline (at 3 weeks)–a common system of evaluation for these trials. With additional patent grants and data from investigator-initiated studies on the horizon, the release of these findings is something the industry is closely looking out for.
CG’s Bullish Price Target of $80 Suggests Powerful Positive Momentum for CMPS
Canaccord Genuity’s bullish report values Compass Pathways with a price target of $80–signaling significant positive momentum for the stock. With the World Health Organization estimating approximately 17.5mn and 40n people in the US and Europe suffer from depression as of 2015, there is a huge market opportunity for the emerging field of psilocybin therapeutics. With current treatments failing to meet expectations, the team at Compass is in an advantageous position to enter the market with COMP360.
