Definium Therapeutics’ Stock Surge
On Monday, Definium Therapeutics saw its stock price jump by 50%, reaching its highest point in over four years. This spike followed the announcement of promising results from a late-stage trial involving their experimental drug, which is based on LSD. The drug reportedly led to a significant reduction in major depression symptoms among patients who received a single dose.
The company indicated that participants taking the experimental medication scored considerably lower on a standard depression measurement compared to those given a placebo after a six-week period. Specifically, the difference was noted to be 8.1 points, which was the primary objective of the study.
Known as DT120, this medication falls under the category of classical psychedelics, which are known for their ability to change mood, perception, and cognitive processes temporarily. It’s a preparation of lysergide or LSD, functioning by activating serotonin receptors in the brain.
Earlier in April, President Trump had signed an executive order aimed at accelerating access to psychedelic treatments, further spotlighting the evolving landscape of mental health therapy.
Since the start of the year, Definium’s stock has risen by about 174%, closing at $36.67 after the recent surge.
Ami Fadia, an analyst at Needham, described the trial results as “unprecedented in the depression field.” She noted that the drug demonstrated a more significant reduction in depression scores at the six-week mark compared to those achieved by other treatments like Johnson & Johnson’s Sprabat and Compass Pathways’ COMP360 at four weeks.
Other options for major depressive disorder (MDD) include Axsome Therapeutics’ Auvelity and Sage Therapeutics’ Zurzuvae.
Fadia mentioned that “DT120 has the potential to emerge as a worthy competitor in the MDD/TRD space with a strong clinical profile.” Definium is preparing to submit the trial data to the Food and Drug Administration and is also moving forward with another late-stage clinical trial for depression.
The drug was generally well tolerated among participants, with 99% of adverse events classified as mild to moderate. These mostly occurred on the day the drug was administered, and thankfully, there were no major safety concerns or increases in suicidal thoughts reported.
The study involved 149 participants aged 18 to 74 who were diagnosed with MDD, which, as many may know, is the second most prevalent mental illness in the United States, with over 21 million adults experiencing a significant depressive episode annually.
