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Thursday - GH Research PLC (NASDAQ:GHRS) has received an Overweight rating from Cantor Fitzgerald, with a price target set at $14.00. The new coverage is based on the potential of GHRS’s GH001, an inhaled 5-MeO-DMT therapy, to become a standard of care for treatment-resistant depression (TRD). Cantor Fitzgerald’s analysis suggests that GH001 could challenge the current market leader, SPRAVATO, due to its ultra-rapid antidepressant effect and individualized dosing regimen. According to InvestingPro data, analyst targets for GHRS range from $18 to $40, with the stock currently trading at Fair Value levels. The company, valued at approximately $866 million, has shown strong momentum with a 74% return over the past year.
GH Research is advancing GH001, which is seen as a potentially Phase 3-ready candidate. The therapy’s compelling Phase 2b data, coupled with a successful capital raise, is believed to have reduced the risks associated with its development path. GH001 offers a shorter in-clinic time of 1.5 to 3 hours and requires approximately 1 to 4 retreatments every six months, which is considered less burdensome to patients and future healthcare providers. InvestingPro analysis reveals the company maintains a strong financial position with more cash than debt and a healthy current ratio of 15.8, providing ample runway for clinical development.
The analyst’s commentary highlighted the growing sales of SPRAVATO, which is annualizing at $1 billion, and the emerging intermittent therapy paradigm for TRD. GH Research’s therapeutic candidate is designed to fit into the established care infrastructure with its mechanistically and clinically differentiated psychedelic-based approach.
Despite the current FDA clinical hold on GH001, Cantor Fitzgerald remains optimistic. The recent Phase 2b efficacy data and the treatment’s benign safety profile, along with the unmet need for new TRD treatments and increasing clarity from preclinical toxicology studies, are expected to contribute to a capital-efficient path forward. This includes a pivotal, US-inclusive Phase 3 program and the possibility of eventual approval. While InvestingPro data indicates the company isn’t currently profitable, with analysts not expecting profitability this year, its strong financial health score of 2.55 out of 5 suggests solid fundamentals. Subscribers can access 8 additional ProTips and comprehensive financial metrics to better evaluate GHRS’s investment potential.
The analyst expressed confidence that GH001’s therapeutic product profile (TPP) could be well-suited to unseat SPRAVATO as the standard of care for TRD. The anticipation of GH Research’s path towards approval and market entry is reflected in the Overweight rating and the $14.00 price target, signaling a positive outlook for the company’s stock.
In other recent news, GH Research has been making significant strides in its clinical trials. The company’s lead candidate, GH001, an inhalable psychedelic compound for treatment-resistant depression (TRD), has shown promising results in its Phase 2b trial. The trial reported a significant reduction in depression symptoms, with a 57.5% of participants achieving remission by Day 8. Moreover, the open-label extension study revealed that 77.8% of patients were in remission at the six-month follow-up.
In response to these developments, H.C. Wainwright reiterated a Buy rating on GH Research, maintaining a price target of $40.00. The firm’s analysts expressed confidence in the potential of GH001 and its progression to the next phase of clinical trials. Similarly, Rodman & Renshaw raised their 12-month price target for GH Research to $42.00, maintaining a Buy rating as well.
These developments reflect recent progress in GH Research’s clinical trials and the positive outlook from analysts at H.C. Wainwright and Rodman & Renshaw. However, it’s important to note that these are projections and the actual results may vary.
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