Stifel reiterated its buy recommendation and $60 price target for Definium Therapeutics Inc (NASDAQ: DFTX) following a recent meeting with company executives, according to a note published Tuesday.
The brokerage maintained its bullish outlook despite Definium’s second-quarter net loss of $159 million, a figure driven largely by a $86.2 million non-cash charge related to warrant revaluation. Research and development spending surged to $48.7 million, while general and administrative costs rose to $26.4 million. The losses reflect increased investment in late-stage clinical studies and commercial preparations for the company’s pipeline.
Definium’s lead asset, DT120, is an oral dissolution tablet targeting generalized anxiety disorder and major depressive disorder. Positive Phase 3 results from the Voyage study showed a statistically significant reduction in anxiety scores in a generalized anxiety disorder population. The company is preparing to release data from the Panorama study in September, focusing on the 100-microgram dose versus placebo, with a 50-microgram arm included to address potential functional unblinding concerns.
At current levels, Definium’s shares trade near $40.30, representing a 362% return over the past year according to InvestingPro data. The stock’s valuation stands at approximately $5.42 billion. Stifel’s $60 target implies roughly 49% upside from current levels, though it remains below the Wall Street consensus range of $52 to $90.
Canaccord Genuity raised its price target from $58 to $64 while maintaining a buy rating, while BofA Securities initiated coverage with a buy recommendation, citing potential in Definium’s psychedelic drug portfolio.
