Definium rises as J.P. Morgan starts coverage with overweight rating on LSD-based therapy
DFTX•Definium shares rose 7.4% after J.P. Morgan initiated coverage with an overweight rating and an $84 price target, which represented 145.7% upside to the stock’s last close.
1. Rating and outlook
J.P. Morgan called Definium’s lead candidate, DT120 ODT, a “derisked asset” based on data and said it could help shift treatment of neuropsychiatric disorders. The oral LSD formulation is being developed for major depressive disorder and generalized anxiety disorder. The brokerage expects a “milestone-rich” period ahead, including an application for FDA approval in the first half of 2027, and estimates the drug could generate nearly $5 billion in combined sales by 2035.
