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Follow on Google News | New Treatments For Major Depression On There WayVistaGen Therapeutics' Phase 2 AV-101 Looks Like A Blockbuster
By: BioNap Consulting, Inc. Several pharmaceutical companies are developing drugs that target the NMDA receptor, including behemoths Johnson & Johnson and Allergan. VistaGen is developing AV-101, an oral prodrug that has demonstrated impressive antidepressant effects and safety in preclinical and Phase 1 studies. AV-101 is a glycine B (GlyB) receptor antagonist that negatively modulates the N-Methyl-D-aspartic acid (NMDA) receptor and may induce synaptogenesis. Investigators at the U.S. National Institute of Mental Health (NIMH) are currently studying AV-101 in a Phase 2a clinical trial. It's a fundamentally different pathway from standard antidepressants and similar to the glutamatergic AMPA-dependent pathway of ketamine; but, without the potential negative side effects of NMDA ion channel blocking. If successfully commercialized, AV-101 has peak sales of approximately $1.3 billion in the U.S. and $1.95 billion worldwide. VistaGen recent secured $10 million in cash through a public offering in May 2016. The company is now well-capitalized to advance AV-101 into late-stage clinical studies. There is minimal risk of dilution over the next several months. Valuation comparable analysis suggests the company is worth $171 million today. Traditional valuation methodology using industry average multiples and historical rates of success suggest a similar valuation for the company at around $197 million. This puts the stock fairly valued at a range between $21 and $24 per share, resulting in over 500% upside from today. In this article, I look at the depression market, what recent understanding on the mechanism for ketamine and NMDA receptor antagonism means for investors, and how VistaGen's AV-101 could become a significant player in this market in the next twelve months. Read the article here >> http://www.bionapcfa.com/ End
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