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Stifel Doubles Price Target on Definium Therapeutics, Citing Positive Drug Trial Data
Shares of Definium Therapeutics Inc. (DFTX) rose approximately 3% to $45.79 in morning trading, outperforming a declining broader market. The rally was triggered by a bullish analyst note from Stifel, issued late Monday, which maintained its Buy rating on the stock while doubling its price target to $60 from $30.
Stifel's increased optimism is based on stronger-than-expected Phase 3 clinical trial data for Definium's lead drug candidate, DT120, for the treatment of major depressive disorder (MDD). According to the firm, the positive results significantly lower the risk associated with the drug's development and suggest a much larger commercial opportunity than previously anticipated.
The investment firm now projects an 80% probability of approval for DT120 for both its MDD and generalized anxiety disorder (GAD) indications. Stifel forecasts combined peak revenues could exceed $4 billion, comparing the drug's potential commercial path to that of Spravato. The next significant event for the company is expected to be the release of top-line data from its first Phase 3 study in GAD.
AdThe note from Stifel adds to growing support from Wall Street. In late June, following the release of the positive MDD trial results, Canaccord set a $58 price target and Needham issued a $50 target, both with Buy ratings. Tuesday's stock move brings Definium closer to its 52-week high of $49.20.