Bank of America initiated coverage on Definium Therapeutics with a Buy rating and a $75.00 price target. This valuation suggests a potential upside of over 65% from the stock's previous closing price.
BofA based its positive outlook on DT120, a proprietary form of LSD currently in development. The asset targets major depressive disorder and generalized anxiety disorder. Analysts believe the market underappreciates the multi-billion dollar commercial opportunity for DT120.
The initiation follows positive Phase 3 study results for DT120 in treating generalized anxiety disorder. This new rating aligns with a broader positive analyst consensus for the biotechnology firm. Separately, the company announced the issuance of inducement grants to two new non-executive employees.