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Investing.com - Canaccord Genuity has raised its price target on atai Life Sciences N.V (NASDAQ:ATAI) to $12.00 from $11.00 while maintaining a Buy rating following positive Phase 2b clinical trial results. Currently trading at $2.71, the stock has strong analyst support with targets ranging from $6.00 to $12.00, according to InvestingPro data.
The price target increase comes after Beckley/ATAI announced on Monday encouraging data for BPL-003, an intranasal mebufotenin (5-MeO-DMT) treatment for treatment-resistant depression (TRD). The drug candidate met its primary endpoint and all key secondary endpoints in the trial.
The companies plan to discuss the results with the FDA to design a Phase 3 program for TRD using the 8mg dose of BPL-003. The positive data supports the previously announced ATAI-Beckley merger, which remains on track to close in the second half of 2025.
Canaccord highlighted BPL-003’s potential commercial advantage of requiring approximately two hours or less post-dose clinic time if approved. The firm noted that despite ATAI’s stock closing up about 25% following the announcement, further upside potential exists based on upcoming catalysts.
The research firm maintains that ATAI remains "significantly undervalued relative to the sizes of the opportunities in the mental health indications it is targeting," with BPL-003 now advancing as a Phase 3-ready asset.
In other recent news, atai Life Sciences announced successful top-line results from its Phase 2b trial of BPL-003, an intranasal treatment developed with Beckley Psytech for treatment-resistant depression. The trial met its primary and secondary endpoints, with both 8 mg and 12 mg doses showing significant reductions in depressive symptoms. The study’s positive results have led atai to plan a strategic combination with Beckley Psytech, which is moving forward to shareholder approval. Additionally, atai Life Sciences secured a $50 million private placement to support its corporate and clinical development efforts. The financing round was co-led by Ferring Ventures S.A. and Apeiron Investment Group. H.C. Wainwright maintained a Buy rating on atai, citing the de-risking of BPL-003 as a factor. Lucid (NASDAQ:LCID) Capital Markets also initiated coverage on atai with a Buy rating, setting a price target of $12.00, emphasizing the company’s extensive drug portfolio. These developments highlight atai’s ongoing efforts to advance its mental health treatment programs.
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