These Depression Players Are Top Picks For $400B Mental Healthcare Market, Says Analyst

  • HC Wainwright expects COMPASS Pathways Plc CMPS and Cybin Inc CYBN to be leaders in the emerging $400 billion mental healthcare market.
  • The analysts find COMPASS and Cybin among the best-positioned companies in the neuropharmaceutical psychedelics field owing to the strength of COMP360 (oral form of psilocybin) and CYB003 (oral deuterated psilocybin analog), respectively.
  • COMP360 is in Phase 2 development for treatment-resistant depression (TRD), post-traumatic stress disorder (PTSD), and anorexia.
  • The analysts find CMPS shares highly attractive ahead of October virtual investor day that may outline the Phase 3 program for COMP360 in TRD and the pipeline strategy, which is believed to be underappreciated by investors. 
  • HC Wainwright reiterates the Buy rating and $120 price target for COMPASS.
  • CYB003 is in Phase 1/2a development for moderate-to-severe major depressive disorder (MDD) with interim safety and pharmacokinetic (PK) results by the end of 2022. The analyst also notes Phase 1 feasibility study to evaluate Kernel Flow, a non-invasive brain interface device, is expected to generate results in 4Q22, which could help accelerate the development of novel psychedelics. 
  • The analyst reiterates a Buy rating and $10 price target on CYBN shares. 
  • Price Action: CMPS shares are down 3.97% at $17.18, and CYBN stock is up 1.92% at $0.77 on the last check Tuesday.
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