Mind Medicine initiated with an Outperform at Leerink

Leerink initiated coverage of Mind Medicine (MNMD) with an Outperform rating and $20 price target. The firm likes the emerging psychedelics space with increasing investment in clinical development across multiple psychiatric indications, clear FDA guidance and more established commercial infrastructure following the launch of J&J’s (JNJ) Spravato. Leerink further notes that GAD is a large market with high unmet need, and it has significant overlap with major depressive disorder. The firm believes MM120 has a good chance of working in GAD based on published data from LSD and the robust Phase 2b data, and it has additional label expansion opportunities for MDD. Lastly, Leerink says that MM120’s drug profile is well-positioned for commercial success in GAD/MDD, it could become the best-in-class product in GAD and achieve greater than$1B peak sales opportunities for both indications.