Investorideas.com

Call 800 665 0411 to learn about our services for your stock

Search   Follow Investorideas on Twitter   Investorideas is on Facebook   Investorideas is on Youtube   Investorideas is on Pinterest  Investorideas is on stocktwits   Investorideas is on tumblr   Investorideas is on LinkedIn   Investorideas Instagram   Investorideas Telegram   Investorideas Gettr   Investorideas RSS




Share on StockTwits

Analyst Says Pharma Co. 'Meaningfully Undervalued'

Source: Stefan Quennevill

 

June 2, 2023 (Investorideas.com Newswire) "We continue to view Mindset as meaningfully undervalued," Stefan Quennevill reported in an Echelon Capital Markets research note.


Recently, Mindset Pharma Inc. (MSSTF:OTCMKTS) revealed its FQ323 results (representing the quarter that ended March 31, 2023).

The results were in line with estimates, reported Echelon Capital Markets analyst Stefan Quennevill in a May 31 research note.

Results

Mindset made further advancements in moving its next-generation psychedelic drugs toward clinical development.

In its results, Mindset released the following highlights:

  • CA$1.9 million in revenue, compared to Echelon's estimated CA$4.3 million.
  • General and administrative expenses and research and development expenses of CA$0.7 million and CA$2.8 million, which showed an operating loss of CA$2.9 million, compared to Echelon's expected CA$2.7 million.
  • Net loss totaling CA$0.03 per share, in line with estimates.
  • CA$1.5 million, compared to the estimate of CA$2 million.
  • CA$7.3 million in cash at the end of the quarter.

Quennevill commented this cash "should provide a sufficient runway to bring its various preclinical assets to the clinic."

Lawsuit With Reunion

A lawsuit from Reunion Neuroscience Inc. (REUN:NASDAQ;REUN:TSX) made waves during the quarter; however, Echelon noted it viewed the lawsuit as baseless and, according to Quennevill, "further proof of the strength and strategic value of Mindset's IP portfolio."

Reunion had claimed that Mindset copied the company's lead compound, RE104 (isoleucine glutarate, a prodrug of 4-OH-DiPT), during Mindset's U.S. patent application (No. 11,591,353). This lawsuit was for CA$25 million in damages. Additionally, Reunion put forth a request to designate Dr. Nathan Bryson, its chief scientific officer, as an inventor of the patent, ensuring Reunion's unrestricted operational rights with the compound.

On this, Quennevill said, "While we are by no means patent lawyers, our analysis, as well as commentary from industry IP experts, leads us to believe that the lawsuit is largely baseless, given the general principle in patent law that the patent applicant with the earliest priority date maintains the legal precedents of the claims made in the patent."

Possible Catalyst

Quennevill pointed out that the signing of a partnership for Mindset's compound, MSP-1014, could be a major short-term catalyst for the company within the next few months.

In light of this and the announced results, he noted, "We continue to view Mindset as meaningfully undervalued."

Structure and Predictions

In his report, Stefan Quennevill reiterated his speculative Buy rating on Mindset Pharma Inc. and his target price of CA$1.25 per share.

Quennevill's research also shared current market data on the company.

  • Price: CA$0.32, with a 52-week range between CA$0.27 and CA$0.70
  • Price Target: CA$1.25
  • Market Cap: CA$32 million

Quennevill noted Mindset currently has 131 million shares outstanding and an enterprise value of CA$35 million.

More Info:


Disclaimer/Disclosure: Investorideas.com is a digital publisher of third party sourced news, articles and equity research as well as creates original content, including video, interviews and articles. Original content created by investorideas is protected by copyright laws other than syndication rights. Our site does not make recommendations for purchases or sale of stocks, services or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investing involves risk and possible losses. This site is currently compensated for news publication and distribution, social media and marketing, content creation and more. Disclosure is posted for each compensated news release, content published /created if required but otherwise the news was not compensated for and was published for the sole interest of our readers and followers. Contact management and IR of each company directly regarding specific questions.

More disclaimer info: https://www.investorideas.com/About/Disclaimer.asp Learn more about publishing your news release and our other news services on the Investorideas.com newswire https://www.investorideas.com/News-Upload/

Global investors must adhere to regulations of each country. Please read Investorideas.com privacy policy: https://www.investorideas.com/About/Private_Policy.asp






BiotechIndustryStocks.com - A Leading Global Investor Website for Biotech Industry Stocks

BiotechIndustryStocks.com - investing ideas in biotechnology stocks, medical technology and life sciences

Like Biotech Stocks? View our Biotech Stocks Directory

Get News Alerts on Biotech Stocks

Buy a biotech guest post on Investorideas.com