7 Most Promising Psychedelic Stocks According to Hedge Funds

3. Definium Therapeutics, Inc. (NASDAQ:DFTX)

Number of Hedge Fund Holders: 29 

Price Target Upside: 78% 

The third stock on our list of most promising stocks is Definium Therapeutics, Inc. (NASDAQ:DFTX).

TheFly reported on January 30 that Jefferies initiated coverage of DFTX with a Buy rating and a $30 price target. The firm highlighted that a single dose of DT120, which is the company’s lead candidate, achieved a 48% remission rate in a Phase IIb trial for generalized anxiety disorder. The company’s growth potential in the GAD therapy landscape is further supported by Jefferies’ 65%–75% confidence that DT120 will produce best-in-class efficacy in the two Phase III trials that are scheduled to start in Q2.

Earlier on January 29, Baird increased its price target on Definium Therapeutics, Inc. (NASDAQ:DFTX) to $37 from $16 and maintained an Outperform rating. With hope for the candidate’s clinical impact and the company’s future growth, the firm revised its financial model to include DT120’s potential for treating major depressive disorder.

Moreover, on January 29, DFTX announced that it has appointed Roger Adsett, currently Chief Operating Officer of Insmed (INSM), to its Board of Directors. This addition expands the board from six to seven members, strengthening the company’s leadership team.

Definium Therapeutics, Inc. (NASDAQ:DFTX), formerly known as MindMed, is a clinical‑stage biotech applying scientific rigor to psychedelic‑inspired therapies for psychiatric and neurological disorders, advancing late‑stage LSD‑based and novel treatments with multiple Phase 3 programs to transform mental health care.