E VistaGen Is Prepared For 2021 Fueled By Recent Analyst Upgrades And Large Institutional Buyers

There is a lot of action moving into major depression disorders. It has been known that ketamine has had a lot of adverse effects on patients for a long time, however, lack of a good substitute, low visibility, and difficulty in achieving any sort of breakthrough in this segment seemed to have stalled major advancements. That said, VistaGen’s deal with Pherin Pharmaceuticals to develop PH-94B as an on-demand treatment for social anxiety disorder and PH-10 as a fast-acting antidepressant neuroactive nasal spray has positioned the Company to grab a healthy share of, social anxiety, and major depression markets.

There is little question this is a burgeoning market with major depression increasing along with Covid for obvious reasons. However, even barring growth due to Covid, the market for a better drug treatment is ample to provide for decent revenue for Vistagen’s drugs such as PH10, PH94B, and AV-101.

Interest in the depression market has spurred a unit of Johnson and Johnson to expand its use of Spravato nasal Ketamine-based drug to treat depression. Ketamine’s price alone is enough to cause depression costing over $1,000 out of pocket per infusion. Allergan continues to dabble with Ketamine like antidepressants and other minor players like Axome Therapeutics take nibbles at the market with varying pills.

That said, after getting PH94B fast Tracked by the FDA in 2019, VistaGen had a tremendous year in 2020 garnering $100 million investment through a major stock offering, reaching a consensus with the FDA on key aspects for PH94B’s pivotal Phase 3 study which will provide time and cost savings, and preparing for planned Phase 2B clinical development of PH10 . This is expected to catapult it into a major player in 2021. I would not be at all surprised to see strong clinical outcomes and potentially FDA approvals this year.

Clearly market investors are not waiting to place their bets. I would agree that VistaGen looks to be headed to at least the average $6 range some analysts have forecasted the stock to go to. This comes after its rise from $0.70 to $1.94 in 2020.

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Disclosure: This article is part of a new “UnderCovered” series of exclusive articles featuring companies with limited coverage. Authors are compensated by TalkMarkets for their time, and ...

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Moon Kil Woong 2 months ago Author's comment

Here are some article to help look at the news in perspective:


Bill Johnson 5 months ago Member's comment

Sounds impressive to me.

Moon Kil Woong 5 months ago Author's comment

Thanks, I agree there are good prospects for this company and the price will likely continue to rise.

Terrence Howard 5 months ago Member's comment

Good article, thanks. Totally unrelated but what do you think about $AZN? I know Pfizer and Moderna have the head start on the vaccine, but it sounds like AZN's drug will be almost as effective at 90% efficacy (if they can replicate their initial test where they accidentally gave a quarter of the participants a 1/2 dose). And at $2 per vial instead of $200, I would think it will be the drug of choice for populous, yet poor nations like India, and Africa. Plus there will be no need for specialized freezers.

Moon Kil Woong 5 months ago Author's comment

I'm not that big on the vaccines. As you know they mutate and they all get around 80-90% effectiveness. I'd play drugs that cure or help the infected. I wrote on one of them but there are also others. The vaccine effort was most heavily pushed by the Trump administration and people played it for the free money given out for development mostly.

That said, not using freezers is a big benefit. In Africa the spike has already changed so it is clear that Covid can change its spike potentially evading modern vaccines like the flu. This would be my biggest concern about the viability of vaccines.

Terrence Howard 5 months ago Member's comment

Thanks for your thoughts. Makes a lot of sense.

Beating Buffett 5 months ago Member's comment

Good stuff.

Stock Fan 5 months ago Member's comment

Great read. The price is low enough I picked up a few shares.

Moon Kil Woong 5 months ago Author's comment

It's great to hear from you. I'm glad you enjoyed it.