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Tuesday, GH Research PLC (NASDAQ:GHRS) received a reiterated Buy rating and $40.00 price target from H.C. Wainwright, representing significant upside potential for the $936 million market cap company. The stock has already surged nearly 90% in the past week, according to InvestingPro data. The firm’s analyst highlighted GH Research as a top pick for 2025 following the announcement of successful Phase 2b trial results for its lead candidate GH001, an inhalable psychedelic compound aimed at treating treatment-resistant depression (TRD).
The trial, which reported results on February 3, met its primary endpoint. The individualized dosing regimen of GH001 led to a significant reduction in depression symptoms, outperforming the placebo group. On Day 8 after dosing, patients experienced an average improvement of -15.2 points on the Montgomery-Åsberg Depression Rating Scale (MADRS), compared to a +0.3 point change with the placebo. The company maintains a strong financial position with more cash than debt on its balance sheet, and its current ratio of 15.8 indicates robust liquidity to support ongoing clinical development.
A notable 57.5% of participants achieved remission by Day 8, a stark contrast to 0% in the placebo group. The open-label extension study revealed that 77.8% of patients were in remission at the six-month follow-up, with no serious adverse events reported during the trial or the extension period. The treatment regimen ranged from one to four doses.
GH Research’s GH001 has the advantage of not requiring mandatory psychotherapy or psychological support, setting it apart in the psychedelics space. This aspect could be a significant differentiator for GH001 as it advances to Phase 3 development.
The analyst at H.C. Wainwright expressed a positive outlook on the potential of GH001, stating that the Phase 2b data support the progression to the next phase of clinical trials. The firm’s reiteration of the Buy rating and price target reflects confidence in GH Research’s trajectory and its place in the market for the year 2025. While InvestingPro analysis suggests the stock is currently trading above its Fair Value, subscribers can access 12 additional ProTips and comprehensive financial metrics to make informed investment decisions.
In other recent news, GH Research PLC has seen significant advancements in their clinical trials. The company’s Phase 2b trial for GH001, a treatment for resistant depression, reported positive results, with a significant reduction in the Montgomery-Åsberg Depression Rating Scale by -15.5 points. A noteworthy 57.5% of patients treated with GH001 achieved remission on Day 8, compared to none in the placebo group.
Furthermore, GH Research has completed enrollment for its European Phase 2b trial of GH001, anticipating the release of top-line data between the fourth quarter of 2024 and the first quarter of 2025. 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.
In addition to these developments, GH Research announced the appointment of Dr. Velichka Villy Valcheva as its new Chief Executive Officer. The company also reported a strong cash position of $182.6 million, indicating robust financial health. These recent developments underline GH Research’s continued commitment to advancing its clinical programs.
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