VistaGen Analyst Highlights Potential In Anxiety Treatment

 William Blair initiated coverage on VistaGen Therapeutics Inc VTGN, a clinical-stage biopharmaceutical company focused on developing next-generation treatment options for social anxiety disorder (SAD) and other mental health conditions. 

The lead product Fasedienol (PH94B), is an intranasal pherine and is in late-stage development for SAD, which affects about 10% of the U.S. population, with 6 million adults being treated by a physician.

Aside from one negative Phase 3 study, PALISADE-1, which was impacted by the pandemic, William Blair says fasedienol has shown strong proof of concept.

The analysts Tim Lugo, Lachlan Hanbury-Brown, and John Boyle note that the market underappreciates the FDA’s concerns about benzodiazepine abuse, and the lack of abuse potential for fasedienol in the large anxiety market suggests that even a small penetration into this large market would lead to a blockbuster product. 

The analyst initiates with an Outperform rating and estimates a fair value for shares of $14.

VistaGen remains an overlooked, undervalued name with differentiated assets in large mood disorder markets, William Blair writes.

Fasedienol, itruvone, and VistaGen’s other pherines (PH80, PH15, and PH284) address major markets across mental health crisis to women’s health. 

https://www.benzinga.com/analyst-ratings/analyst-color/23/12/36075808/undervalued-vistagen-therapeutics-analyst-highlights-potential-in-anxiety-treatment