Our Stock of the Week is Definium Therapeutics (DFTX). It was our Stock of the Week back on June 15, but as a reminder, Definium Therapeutics is a late-stage clinical biopharmaceutical company whose lead candidate is a pharmaceutically optimized form of LSD (DT120, also referred to as lysergide tartrate) as a treatment for generalized anxiety disorder, major depressive disorder, and (eventually) PTSD.
A steady trender since April of 2025 (when it was still trading under the ticker MNMD), DFTX was already on traders’ radar screens when the White House issued a major Executive Order this April aimed at accelerating mental health innovation and expanding access to psychedelic-based medical treatments for severe mental illness. However, on June 22, shares jumped sharply higher on about 10x average volume after the company announced the Phase 3 Emerge trial in major depressive disorder hit its primary and all key secondary endpoints, marking the first-ever positive Phase 3 result for an LSD-based therapy. Management called it the largest effect ever reported in a Phase 3 MDD study, with benefits showing up as early as week one and holding through week 12. The stock saw solid upside follow-through, nearly doubling over the next several days, with RBC Capital raising its price target to $57 and reiterating an Outperform rating on the news.
Notably, there are two additional pivotal readouts that are expected to hit in the near-term, including the Voyage GAD trial (which could happen as early as today, Aug 10), and the Panorama GAD trial, which should follow later in the quarter. Importantly, the company ended the last quarter with $1.1 billion in cash, which is enough to fund operations through 2030.
Meanwhile, the average price target of the 13 analysts is $62.08, with a range from $50 to $75, implying more than 34% upside from current levels.
Over the past several weeks, the stock has been basing at highs, pushing toward the upper end of its range on a slight uptick in volume into the end of last week, and could be in position for another leg higher, depending (of course) on how the Voyage results turn out. We are holding a core position and will look to trade any post-news volatility.
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