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On Monday, Rodman & Renshaw, through analyst Elemer Piros, increased the 12-month price target for GH Research PLC (NASDAQ:GHRS) to $42.00, up from the previous target of $24.00. The firm maintained a Buy rating on the stock, following the announcement of successful clinical trial results for GH001, the company’s inhalable mebufotenin candidate for treatment-resistant depression (TRD).
The Phase 2b study, known as GH001-TRD-201, was a randomized, double-blind, placebo-controlled trial that enrolled 81 patients. Of these, 40 received GH001, while 41 were given a placebo. The results indicated a significant reduction in the primary endpoint, the Montgomery-Åsberg Depression Rating Scale (MADRS) total score, with a notable mean decrease of 15.2 points from baseline on day eight for the GH001 group. This was in stark contrast to a 0.3-point increase in the placebo group. InvestingPro analysis shows the company maintains a strong financial health score of 3.83 for price momentum, with a solid balance sheet showing more cash than debt.
The study also showed that 57.5% of the patients treated with GH001 achieved remission just two hours following treatment, and this effect was sustained at day eight. Furthermore, an impressive 78% of participants who completed the six-month follow-up remained in remission. These results were highlighted as unprecedented, especially when compared to existing treatments like Spravato, which typically results in 10-20% remission rates.
Additionally, GH001’s treatment regimen, which requires a 1.5-3-hour stay at a facility approximately four times over six months, may offer a significant advantage over other psychedelic treatments, such as psilocybin and LSD, as well as over Spravato.
The successful trial outcome also met all secondary endpoints, which were in line with the primary outcome. The treatment with GH001 led to clinically and statistically significant improvements on other scales, including the CGI-S and HAM-A scales, as well as the Q-LES-Q-SF Questionnaire, on day eight compared to the placebo group.
The positive clinical trial results for GH001 in treating treatment-resistant depression have reinforced Rodman & Renshaw’s confidence in GH Research PLC, prompting the firm to raise its price target for the company’s shares. The potential of GH001 to set a new standard in psychiatric treatment has been recognized, and this is reflected in the firm’s updated valuation of the stock.
In other recent news, GH Research has made significant strides in its clinical trials. The company reported positive results from its Phase 2b trial for GH001, a treatment for resistant depression. This trial met its primary endpoint, showing a significant reduction in the Montgomery-Åsberg Depression Rating Scale by -15.5 points. On Day 8, 57.5% of patients treated with GH001 achieved remission, compared to none in the placebo group.
Furthermore, GH Research has completed enrollment for its European Phase 2b trial of GH001, and it anticipates releasing top-line data between the fourth quarter of 2024 and the first quarter of 2025. The company also reported a strong cash position of $182.6 million, indicating robust financial health.
Analysts from H.C. Wainwright and Canaccord Genuity maintained their Buy ratings on GH Research, with H.C. Wainwright reaffirming a $40 price target and Canaccord Genuity adjusting its target from $31 to $28. The company also announced the appointment of Dr. Velichka Villy Valcheva as its new Chief Executive Officer. These are among the recent developments in GH Research’s ongoing commitment to advancing its clinical programs.
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