Yesterday, we reported on Small Pharma being granted an important patent for their DMT programs (Small Pharma Granted U.S. Patent for Injectable DMT)
The patent, which will represent the Company’s ninth issued patent, will be the first U.S. patent grant within the Company’s psychedelic portfolio, and includes formulations of DMT, the active ingredient in SPL026, and of deuterium-substituted DMT, including the active ingredient in SPL028. The patent will also protect novel injectable formulations of other known psychedelic compounds, including 5-methoxy-DMT and psilocybin.
Seems the investment community also noticed the news, as Roth Capital, a major investment firm, has reiterated their Buy rating and bullish price target for Small Pharma based on the news.
We initially reported on Roth’s coverage back in June (Small Pharma Gets Big Price Target From Two Analysts):
“The DMT-focused firm has received Buy ratings from both Roth Capital and Canaccord Genuity. Roth has given Small Pharma a $5 price target, a spectacularly bullish prediction considering the share is currently under $0.20. Canaccord was somewhat more conservative, with a still very bullish $1 target (over 4x the current price).”
Now, Roth analyst Elemer Piros has doubled down on its positive outlook, citing the IP value of this new patent.
In a world where there is a substantial doubt of patentability of naturally occurring compounds, such as psilocybin, DMT or 5-MeO-DMT, Small Pharma successfully developed a defensible, unique and proprietary injectable formulation of such drugs. The USPTO will grant the patent on August 9, 2022 (patent no. 11,406,619). The novel and non-obvious elements of the formulation are 1) non-physiological pH (from 3.5 to 6.5) and 2) osmolality (from 250 to 350mOsm.Kg). Such formulations allow for a room temperature shelf life of an estimated three years, vs. days to weeks at physiological pH (7.4). The patent covers the original compounds and the deuterated versions of them, such as SPL026 (DMT) and SPL028 (deuDMT).
The price target is extremely bullish ($5 versus current trading price of $0.13) and such predictions should be taken with grains of salt and your own due diligence. However, public presentation of such targets shows confidence by industry professionals and highlights that the company is likely on the path towards something positive.
See the cover page from their updated note below.
