atai Life Sciences stock maintains Buy rating after positive Phase 2b results

Published 02/07/2025, 12:30
atai Life Sciences stock maintains Buy rating after positive Phase 2b results

Investing.com - H.C. Wainwright has reiterated a Buy rating and $10.00 price target on atai Life Sciences N.V (NASDAQ:ATAI) following positive Phase 2b trial results for its depression treatment. According to InvestingPro data, analyst targets range from $6 to $12, with the stock currently trading near its 52-week high of $2.90.

On July 1, atai announced successful top-line data from its Phase 2b trial of BPL-003, an intranasal formulation of mebufotenin (5-MeO-DMT), developed with Beckley Psytech for treatment-resistant depression (TRD). The trial met its primary and all key secondary endpoints, with both 8 mg and 12 mg doses showing statistically significant and clinically meaningful reductions in depressive symptoms through eight weeks. The market has responded positively to these developments, with the stock delivering a remarkable 103% return year-to-date.

The company reported that most patients were discharge-ready within 90 minutes of dosing, which supports scalability within the established two-hour in-clinic interventional psychiatry model. Based on these results, atai plans to complete its previously announced combination with Beckley Psytech.

The company has executed a new $50 million private placement expected to close in the third quarter of 2025. atai also plans to engage with regulators in the same quarter and advance the 8 mg dose into a Phase 3 trial, which could begin as early as the first half of 2026.

H.C. Wainwright noted that these results significantly de-risk BPL-003 and strengthen atai’s position in short-duration psychedelics, supporting the firm’s maintained Buy rating and $10 price target.

In other recent news, atai Life Sciences and Beckley Psytech announced positive results from their Phase 2b trial of BPL-003, an intranasal treatment for treatment-resistant depression. The trial met its primary and secondary endpoints, with both 8mg and 12mg doses showing significant reductions in depressive symptoms. The companies plan to advance the 8mg dose into Phase 3 development after consulting with regulatory authorities. Additionally, atai Life Sciences secured $50 million in private placement funding, co-led by Ferring Ventures S.A. and Apeiron Investment Group, to support its clinical development and corporate purposes.

Lucid (NASDAQ:LCID) Capital Markets initiated coverage on atai Life Sciences, assigning a Buy rating and setting a price target of $12.00, citing the company’s extensive drug portfolio. H.C. Wainwright also maintained a Buy rating with a $10 price target, following the announcement of a strategic merger with Beckley Psytech. This merger aims to enhance atai’s position in the mental health sector, combining its pipeline with Beckley’s leading candidate, BPL-003. These developments reflect atai’s ongoing efforts to advance innovative treatments for mental health disorders.

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