ATAI Life Sciences N.V. (ATAI:NASDAQ) announced in a press release that the company had invested in Beckley Psytech based on an interest in the development of psychedelics in clinical treatments for mental health conditions.
According to the press release, the company's investment "aims to accelerate the development of Beckley Psytech's two clinical-stage, patent-protected, short-duration psychedelic candidates, BPL-003 and ELE-101, by adding them to ATAI's mental health innovation platform." The company reports that Beckley's BPL-003 is a DMT product that distinguishes itself from other methods because it is administered nasally and only requires a short treatment period, while ELE-101 is a psilocin product. The press release stated that BPL-003 is intended to treat Treatment Resistant Depression and Alcohol Use Disorder, while ELE-101 is intended to treat Major Depressive Disorder.
ATAI Founder and Chairman Christian Angermayer commented, "This transaction underscores our conviction in the potential of psychedelics as groundbreaking treatments for people living with mental health disorders. Short-duration psychedelics have the potential to offer similar clinical benefits to longer-acting psychedelics in a more efficient and scalable way, which could lead to increased patient access. By including BPL-003 and ELE-101 in the ATAI platform, we are building the largest portfolio of psychedelic compounds with prior clinical evidence."
Psychedelics See Acceptance in Clinical Settings
Psychedelics have become increasingly accepted in clinical settings, especially as a treatment for difficult or chronic mental health diagnoses. Matt Wirz with The Wall Street Journal reported on January 5, 2024, that the industry has seen significant financial support, with the Multidisciplinary Association for Psychedelic Studies raising US$100 million worth of funding through investments.
In the United States, as reported by MRP, the pharmaceutical industry occupies a unique and optimistic position in the post-pandemic world.
According to MRP, Johnson and Johnson's earnings report showed an annual growth rate of 4.0%. If Johnson and Johnson continue to be an indicator of trends for the pharmaceutical industry, then this market looks as if it will continue to expand.
880% Return on Investment
Analyst Patrick Trucchio with H.C. Wainwright & Co. reviewed the company as a "Buy" for investors and gave the company a target share price of CA$20 per share, with a projected return on investment of 880%.
Trucchio cited the company's progress made on its clinical drug trials for anxiety and depression, which have progressed to Phase 2 and Phase 3 of clinical trials, respectively.
According to the company's investor presentation, this deal represents a number of catalysts, as both drugs are expected to hit significant milestones in 2024; BPL-003 is expected to reach Phase 2a and Phase 2b for treatment-resistant depression, and Phase 2a for Alcohol Use Disorder, while ELE-101 is expected to reach Phase 1 for the treatment of Major Depressive Disorder.
Ownership and Share Structure
Streetwise Ownership Overview*
Reuters provided a breakdown of the company's ownership and share structure, where management and insiders own approximately 2.84% of the company. According to Reuters, CEO Florian Brand owns 2.84% of the company with 4.72 million shares.
Reuters reports that institutional investors own approximately 29.07% of the company, as Apeiron Investment Group Ltd. owns 18.25% of the company with 30.30 million shares, Galaxy Group Investments L.L.C. owns 6.50% of the company with 10.80 million shares, Morgan Stanley Investment Management Inc. (U.S.) owns 0.95% of the company with 1.58 million shares, BlackRock Institutional Trust Company, N.A., owns 0.86% of the company with 1.42 million shares, BMO Capital Markets (U.S.) owns 0.58% of the company with 0.97 million shares, Morgan Stanley & Co. L.L.C. owns 0.53% of the company with 0.88 million shares, State Street Global Advisors (U.S.) owns 0.52% of the company with 0.86 million shares, BlackRock Asset Management Ireland Limited owns 0.45% of the company with 0.75 million shares, and Brown University owns 0.43% of the company with 0.72 million shares.
According to Reuters, there are 166.01 million shares outstanding with 149.96 million free float traded shares, while the company has a market cap of CA$332.02 million and trades in the 52 week period between CA$1.03 and CA$2.39.
|Want to be the first to know about interesting Psychedelics investment ideas? Sign up to receive the FREE Streetwise Reports' newsletter.
- Amanda Duvall wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
For additional disclosures, please click here.