BTIG initiated coverage on Bright Minds Biosciences Inc. (NASDAQ:DRUG), a clinical-stage company focused on neurological and psychiatric disorders.
Investment in Bright Minds is based on the expectation that BMB-101 will effectively and precisely treat absence seizures without unacceptable toxicities.
Efficacy for BMB-101 is based on trials with similar, but less specific, drugs along with preclinical experiments.
Analyst Thomas Shrader says BMB-101’s targeted patient population is very large and includes typical absence seizures, atypical absence seizures, and drug-resistant epilepsies, including developmental and epileptic encephalopathies (DEEs), giving the stock high potential upside over the next several years.
BTIG initiated with a Buy rating and a price forecast of $72.
Key Phase 2 data from the Phase 2 BREAKTHROUGH trial are expected by the end of 2025 and are likely to be an important catalyst for the stock.
On Thursday, Bright Minds Biosciences shared preclinical results for its investigational compound BMB‑201 in a validated isosorbide dinitrate (ISDN) rat model of vascular headache.
BMB-201 produced statistically significant reductions in facial mechanical allodynia across both male and female cohorts at 1 and 2 hours post-dose, compared to vehicle, and demonstrated greater effect sizes than sumatriptan (migraine drug) at multiple timepoints.
BMB‑201 showed greater effect sizes than sumatriptan at multiple timepoints and doses.
Males: BMB‑201 86% vs. sumatriptan 81% at one hour; 53–64% vs. 44% at two hours.
Females: BMB‑201 76–100% at one hour vs. sumatriptan 56%; 80% at two hours vs. 63%. These effect sizes reflect statistically significant improvements versus vehicle (p<0.05, Dunnett’s test).
Price Action: DRUG stock is up 1.60% at $42.92 at the last check Monday.
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