Bright Minds Biosciences stock initiated with Buy rating at BTIG

Published 08/09/2025, 11:06
Bright Minds Biosciences stock initiated with Buy rating at BTIG

Investing.com - BTIG initiated coverage on Bright Minds Biosciences Inc. (NASDAQ:DRUG) with a Buy rating and a price target of $72.00. The company, currently valued at $313 million, has shown remarkable momentum with a 3,600% return over the past year. According to InvestingPro data, the stock has maintained strong positive returns across multiple timeframes.

The research firm highlighted that Bright Minds is developing a specific 5-HT2C agonist for epilepsies with key differentiators from competitors. BTIG noted that the company’s lead candidate, BMB-101, offers better dosing advantages compared to similar treatments, requiring only once or twice daily administration without cold chain storage. InvestingPro analysis shows the company maintains a strong financial position with more cash than debt and a healthy current ratio, providing runway for its development programs.

BTIG emphasized that BMB-101’s ability to activate 5-HT2C without stimulating the beta-arrestin pathway could potentially avoid tolerance issues seen with earlier treatments like fenfluramine. The drug’s targeted action on GABA interneurons appears to improve activity where needed without raising total levels, which may explain the absence of somnolence in Phase 1 trials.

The firm pointed out that Bright Minds strategically selected absence seizures as its initial target based on previous trial data suggesting efficacy in similar indications. Modern ambulatory EEG devices will be used to track seizure reduction in the upcoming Phase 2 trial.

Phase 2 data for BMB-101 is expected around year-end 2025, with BTIG noting that activity in absence seizures typically predicts effectiveness in other seizure types. The strong analyst consensus, as reported by InvestingPro, supports the positive outlook, with multiple analysts revising earnings estimates upward for the upcoming period. Subscribers can access 10+ additional ProTips and detailed financial metrics to make more informed investment decisions.

In other recent news, H.C. Wainwright has reiterated a Buy rating for Bright Minds Biosciences Inc., maintaining a price target of $85.00. The firm highlights the upcoming release of top-line data from the Phase 2 BREAKTHROUGH trial, which is evaluating BMB-101 for absence epilepsy and developmental and epileptic encephalopathies (DEE), as a significant milestone for the company. This development is anticipated in the second half of 2025, marking a key catalyst for Bright Minds Biosciences. Investors are closely watching these trials, as their outcomes could impact the company’s future direction. The reiteration of the Buy rating suggests continued confidence from H.C. Wainwright in the company’s potential.

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