Echelon Capital Markets initiated coverage of Mindset Pharma (CSE:MSET) with a “speculative buy” rating and price target of $1.25 (Canadian). The stock closed at 33 cents on July 6.
Mindset develops patented psychedelic therapeutics with potentially improved safety and functional profiles that make them better fit for purpose.
The company is developing four families of drug candidates inspired by psilocybin and DMT, a hallucinogen tryptamine drug, but with improved safety profiles and optimized potency and bioavailability.
“By leveraging the existing data generated in ongoing trials of the classic psychedelic compounds, they may also be among the first second-gen psychedelic drugs to market with robust patent protection,” writes analyst Stefan Quenneville.
He said Mindset’s partnership with Otsuka Pharmaceutical is one of the first big pharma deals in the space, the “first and only deal for next-gen drug candidates.”
Upcoming catalysts for Mindset include lead candidate, MSP-1014, moving to Phase 1 clinical trials as well as Family 2 and 4 lead candidate selection, all by year end, Mr. Quenneville said, adding that potential partnerships for Families 1 and 3 may be catalysts over the next 24 months.
