Crispr Therapeutics shares tumble after significant earnings miss
Stifel maintained its buy rating and $12.00 price target on VistaGen Therapeutics (NASDAQ:VTGN) following the company’s fiscal year 2025 update. Currently trading at $2.16, the stock appears undervalued according to InvestingPro analysis. The research firm cited continued progress in VistaGen’s two ongoing Phase 3 studies of fasedienol in social anxiety disorder (SAD).
VistaGen announced earlier this quarter that while its PAL-3 study remains on track for results in the fourth quarter of 2025, the PAL-4 data readout has been delayed to the first half of 2026. Management attributed this modest delay to leveraging enrollment projections from the PAL-2 study and implementing more stringent criteria for patient selection to improve chances of success. InvestingPro data shows the company maintains a strong liquidity position with a current ratio of 6.51 and more cash than debt on its balance sheet.
The company emphasized that patient demand remains strong and did not contribute to the change in timing for the PAL-4 study. VistaGen needs only one of the two Phase 3 trials to succeed in order to file for regulatory approval.
Stifel believes VistaGen has "a credible shot at success in either PAL-3/PAL-4," which would give the company access to what the firm describes as a large commercial opportunity in social anxiety disorder.
With VistaGen currently trading at approximately $50 million in enterprise value and a market cap of $62.63 million, Stifel considers the risk/reward profile "clearly upside-skewed" heading into the first data readout expected in the fourth quarter. Analyst consensus is strongly bullish, with price targets ranging from $12 to $15. For deeper insights into VistaGen’s valuation and financial health metrics, check out the comprehensive research report available on InvestingPro.
In other recent news, Vistagen Therapeutics held its Q1 2025 earnings call, revealing a widened net loss of $51.4 million, up from $29.4 million the previous year. The company reported a significant increase in research and development expenses, which surged to $39.4 million, reflecting its commitment to advancing its innovative pipeline. Despite these financial challenges, Vistagen maintains a robust cash position of $80.5 million, which supports its ongoing and future projects. The company’s strategic focus remains on the PALISADE III trial for Fascidinol, with results anticipated in Q4 2025. Vistagen is also preparing a U.S. Investigational New Drug application for PH-80, targeting women’s health issues. CEO Sean Singh emphasized the company’s dedication to pioneering neuroscience approaches. Analysts have shown interest in the company’s enhanced patient screening processes and its engagement with regulatory bodies.
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