BOSTON—Cormorant Asset Management, LP, a significant shareholder in Bright Minds Biosciences Inc. (NASDAQ:DRUG), has increased its stake in the company with a substantial acquisition of common shares. According to a recent SEC filing, Cormorant and its affiliates purchased shares totaling approximately $3.2 million over a two-day period ending October 16.
The transactions involved the purchase of multiple tranches of common shares at prices ranging from $4.53 to $25.22 per share. The acquisitions were made by Cormorant Global Healthcare Master Fund, LP, under the management of Cormorant Asset Management, with Bihua Chen, the managing member, signing off on the transactions.
These purchases have increased Cormorant's holdings in Bright Minds Biosciences to 875,000 shares. This move underscores Cormorant's continued interest in the pharmaceutical preparations company, which is focused on developing innovative treatments in the life sciences sector.
In other recent news, Bright Minds Biosciences Inc. has reported positive preclinical results for its drug candidate BMB-201. This substance, designed to treat chronic pain, demonstrated similar efficacy to morphine in pain models, but without the associated risks of dependency and side effects. The preclinical testing, conducted under the National Institute of Health pain screening program, revealed BMB-201's potential as a safer alternative to opioids.
Jan Torleif Pedersen, Chief Scientific Officer of Bright Minds, emphasized the significance of these findings, stating that BMB-201's performance in preclinical models underscores the potential of serotonergic therapies in pain management. The company is now preparing to advance BMB-201 into clinical trials.
BMB-201 is a selective 5-HT2A/2C receptor agonist and is part of Bright Minds' portfolio targeting neurological and psychiatric disorders. The promising preclinical results for BMB-201 were presented at the Society for Neuroscience's annual meeting at the NIH Satellite Forum. These recent developments should be considered in the context of Bright Minds' forward-looking information, which includes the design, progress, and completion of future clinical development.
InvestingPro Insights
Cormorant Asset Management's increased stake in Bright Minds Biosciences Inc. (NASDAQ:DRUG) comes at a time of significant market activity for the company. According to InvestingPro data, DRUG has experienced a remarkable 2,591.59% price return in just one week, with similarly impressive returns of 2,132.56% and 2,340.68% over one and three months, respectively. These figures align with the InvestingPro Tip highlighting the stock's "significant return over the last week" and "strong return over the last month."
The company's market capitalization stands at $142.9 million, reflecting the recent surge in investor interest. However, it's important to note that despite the stock's recent performance, Bright Minds Biosciences is not currently profitable, with a negative operating income of $2.49 million over the last twelve months as of Q3 2024. This aligns with another InvestingPro Tip indicating that the company is "not profitable over the last twelve months."
Investors should be aware that DRUG "stock generally trades with high price volatility," as noted by InvestingPro. This volatility is evident in the stock's price movements and could explain the wide range of purchase prices ($4.53 to $25.22) in Cormorant's recent acquisitions.
For those seeking a more comprehensive analysis, InvestingPro offers 13 additional tips for DRUG, providing a deeper understanding of the company's financial health and market position.
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