Maxim Group has increased its price target for Mindset Pharma Inc. to US$1.50 from US$1.00 and repeated its 'Buy' rating on the stock after the company recently announced that it has developed a specialized preclinical rodent model for its next-gen psychedelic drug pipeline in collaboration with InterVivo Solutions.
In a note to clients, Maxim's analysts said: "Mindset is making progress across its families of next-gen psychedelic compounds, demonstrating improved pharmacological and safety profiles across preclinical studies. With a new model in hand to better evaluate these effects in vivo and potentially accelerate testing, we believe there is increased value in the company's next-gen pipeline."
They added: "Based on the preclinical data confirming the target profiles of Mindset's families of psychedelic compounds, we have modestly increased the platform value in out years for the company's next-gen compound platform. The net result is an increase in our price target to $1.50 USD, from $1.00 USD."
READ: Mindset Pharma develops specialized preclinical rodent trained studies with its drugs to differentiate between psychedelic and non-psychedelic effects
Mindset Pharma announced on September 7, 2021, that, in partnership with InterVivo Solutions, it has trained rats to discriminate psilocybin effects from saline via oral and subcutaneous dosing, which to the company’s knowledge is a first in the psychedelics field of research.
By training animals to discriminate psilocybin from saline, Mindset can better determine if they are "experiencing" psilocybin-like effects when administered the company's proprietary compounds. Mindset said it will have an exceptionally strong indicator confirming the effectiveness, safety, and duration of its novel proprietary psychedelic drug candidates, and will be able to support its lead compounds as they progress towards clinical trials.
In a statement, Mindset CEO James Lanthier said: "Mindset has run a battery of highly specialized in vitro and in vivo tests on its patent-pending novel compounds to select the most optimized psychedelic drug candidates for further development.”
“This latest innovative test will enable Mindset to further strengthen the translational potential of Mindset's proprietary compounds, and better understand the molecular mechanisms and neuronal circuits underlying their neuropsychological effects,” he added.
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