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
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