Deutsche Bank says psychedelic therapy boom will benefit this stock
CNBC • • technology
Key Points:
- Deutsche Bank initiated coverage on AtaiBeckley with a buy rating and a $12 price target, suggesting a potential gain of over 250% from the recent closing price.
- The bank highlights AtaiBeckley as a leading player in the emerging field of psychedelic medicine, particularly for mental health treatments resistant to conventional therapies.
- AtaiBeckley is developing key drugs for treatment-resistant depression, including BPL-003 and VLS-01, with projected peak U.S. sales modeled after Johnson & Johnson's Spravato, potentially reaching billions in revenue.
- Another drug, EMP-01, an oral MDMA derivative for seasonal affective disorder, is also expected to generate significant sales, estimated at $1 billion at peak.
- Regulatory barriers are easing, with the FDA likely to approve psychedelic drugs followed by DEA rescheduling, making the sector increasingly attractive to healthcare investors and large pharmaceutical companies.
