RESEARCH NEWS

1st November 2021

TAG Investment Bankers is pleased to announce today publication of a research report into FSD Pharma Inc (NASDAQ: HUGE), which is a biotech company listed in the USA, Canada and Germany.

FSD Pharma’s combination of 3 potentially ground-breaking drugs which address sizable markets, a strong financial position and rejuvenated management team appears not to be reflected in the company’s current stock market valuation. FSD not only has US$43m of net cash but also benefits from a close association with University Health Network. The recent Lucid acquisition and agreement with Covar Pharmaceuticals to support the development of Lucid-PSYCH are consistent with a major uptick in momentum within the company. The report argues for a US$7.50 fair value per share.

FSD’s investment case focuses on the company’s ability to develop and bring to market three drugs which are consistent with its ability to deliver against a proprietary “Total Brain Health” mission statement. These three drugs – FSD-PEA, Lucid-MS and Lucid-PSYCH – are designed to treat underlying mental illnesses and neurological insults.

Central to FSD’s unique selling proposition is this company’s objective to develop drugs which address the underlying conditions rather than simply ameliorate their symptoms, which contrasts with the currently available range of drugs in the market. Moreover, evidence from Phase 1 clinical trials of the FSD-PEA drug supports the case for the drug being very safe while the Lucid acquisition gives the company exclusive rights to a patented family of molecules from University Health Network.

FSD’s commercial outlook benefits from sizable addressable markets for its drugs as the company targets the important areas of depression, multiple sclerosis, other inflammatory disorders and progressive losses of brain function. The company itself estimates that depression represents a US$225bn addressable market in the US alone (i.e. annual American spend on mental health) with MS, where there currently is no cure, being a market with around US$23bn potential.

FSD’s leadership team, which was enhanced by the Lucid acquisition, combines commercial efficacy with deep pharmacological experience. Two of the group’s founders – Anthony Durkacz and Zeeshan Saeed – remain in senior managerial roles while Dr Lakshmi Kotra importantly joined through the Lucid acquisition. Dr Kotra’s position reinforces the company’s relationship with UHN.

Contact:

Chris Wickham

Chief Marketing Officer

TAG Investment Bankers Ltd Chris.wickham@tagbankers.com

Tel – +4477 6465 5390

Here is the report.

Disclaimer

FSD Pharma Inc paid TAG Investment Bankers analyst Chris Wickham US$10,000 to produce this report. This report has been published by TAG Investment Bankers Ltd. TAG Investment Bankers Ltd do not offer personal advice, and the information referred to on our sites is not suitable for all investors. You confirm that you are a person falling within the following categories of an appropriately qualified investor,and are therefore exempt from the general restriction on the communication of invitations or inducements to engage in investment activity on the grounds that you are, either; a high net worth individual, a sophisticated investor, an Investment Professional or a representative of a high net worth company, trust, partner- ship or association. If you are unsure whether an investment is suitable for your circumstances we strongly encourage you to consult an FCA/SEC or other Financial Regulator in your country of residence – authorized Independent Financial Adviser before committing to any form of investment. All information and numbers are subject to change without notice. Any return on investment stated is for discussion purposes only and is based on a best efforts basis. Under no circumstances whatsoever does it represent a fair and accurate

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