atai Life Sciences could double on positive data from Beckley Psytech's depression therapy: Jefferies
Published: 15:34 20 May 2025 EDT
atai Life Sciences (NASDAQ:ATAI, ETR:9VC) could see its stock more than double following the release of key trial data later in 2025, according to Jefferies analysts, following another batch of positive clinical trial results from Beckley Psytech’s BPL-003 program targeting treatment-resistant depression (TRD).
Beckley Psytech’s Phase 2a study of BPL-003, an intranasal form of 5-MeO-DMT, showed that a single dose of the therapy along with selective serotonin reuptake inhibitor (SSRI) therapies, produced rapid, robust, and sustained antidepressant effects.
Patients experienced average reductions of 18 MADRS points by day 1, 19 by month 1, and 18 by month 3.
“Two major caveats are open-label design and N=12 patients, but the drug's profile seems to be consistent across multiple studies, incrementally de-risking the key Phase 2b TRD study in mid-2025,” the analysts wrote.
The upcoming 196-patient Phase 2b trial is comparing 8mg and 12mg doses of BPL-003 to a sub-active 0.3mg.
“We’d like to see a 5-point MADRS separation at Week 4, the primary endpoint, for a potential +100% stock move,” Jefferies wrote.
Even though atai does not directly control the BPL-003 program, a positive readout should still yield upside, the analysts wrote, pointing out atai’s 34% equity stake in Beckley and its option to increase ownership to over 45%.
Regulatory support for psychedelics is another tailwind for atai, the analysts added.
Jefferies noted that FDA Commissioner Dr Martin Makary and HHS Secretary RFK Jr have publicly voiced support for psychedelic therapies, and that the FDA has awarded Breakthrough Therapy designations for compounds like psilocybin, MDMA, and esketamine.
They have a ‘Buy’ rating on atai and $5 price target. Shares traded 12% higher at about $2 on Tuesday afternoon.
