DFTX Stock Clocks Best Day In Over Two Years On 'Best-Case' Clinical Results For Oral Lysergide In Depression

• DT120 was generally well tolerated, with most side effects mild to moderate and occurring mainly on the day of dosing, Definium said. 
• Canaccord raised its price target on the stock, citing higher conviction in the DT120 program and said the major depressive disorder data also bode well for upcoming late-stage results in generalized anxiety disorder. 
• In a separate announcement, Definium said it plans to sell $500 million of common shares and pre-funded warrants in an underwritten public offering.

Shares of Definium Therapeutics Inc (DFTX) clocked their best day in over two years on Monday after the company announced positive results from a trial of its psychiatric program DT120.

DFTX shares closed up 50% in the regular trading session, marking the best day since March 2024. However, shares slipped 5% after hours after the company announced a public offering of shares, raising dilution concerns.

DFTX Trial Results 

Definium Therapeutics announced positive topline results from its late-stage EMERGE study of DT120, an orally disintegrating tablet containing lysergide, in adults with major depressive disorder. A single 100-microgram dose produced rapid and lasting antidepressant effects that were significantly better than placebo.

The trial enrolled 149 patients with moderate to severe depression. Those who received DT120 improved by an average of 13.3 points on the MADRS depression scale after six weeks, compared with 5.2 points for the placebo group — a statistically significant 8.1-point advantage. The benefit appeared within the first week and remained strong through 12 weeks. Patients taking DT120 were also more likely to respond to treatment and reach remission. DT120 was generally well tolerated, with most side effects mild to moderate and occurring mainly on the day of dosing. There were no serious safety issues or increase in suicidal thoughts, and patients were typically able to leave the clinic about six hours after taking the dose, the company said.

Wall Street Reaction

Analysts responded positively to the company update. Canaccord Genuity raised its price target to $60 from $38 while maintaining a ‘Buy’ rating. The firm cited higher conviction in the DT120 program and said the major depressive disorder data also bode well for upcoming late-stage results in generalized anxiety disorder, describing the drug as “a very solid contender” with further room to run.

RBC Capital Markets called the results “best-case” efficacy. The firm, which raised its price target to $57 from $36 and kept an Outperform rating, said the data meaningfully exceeded expectations, showed rapid onset and sustained benefit, and carried no new safety signals. RBC said the results significantly de-risk the major depressive disorder indication.

Jefferies analyst Andrew Tsai, meanwhile, said the “robust” data show that a single dose of DT120 safely delivers rapid, strong, and durable benefits that beat all currently approved therapies. He noted further improvement is expected with repeat dosing and believes the stock could rise another 50% to 100%. Jefferies has a Buy rating and $35 price target on Definium.

Proposed Public Offering

In a separate announcement, Definium said it plans to sell $500 million of common shares and pre-funded warrants in an underwritten public offering, with underwriters having a 30-day option for up to an additional $75 million. Proceeds will support research and development, potential commercialization of DT120, and general corporate purposes, the company said.

How Did DFTX Retail Traders React?

On Stocktwits, retail sentiment around DFTX stock jumped from ‘bullish’ to ‘extremely bullish’ territory over the past 24 hours, while message volume rose from ‘high’ to ‘extremely high’ levels.

A Stocktwits user expressed concerns about an upcoming massive dilution.

Another user, however, opined that Compass Pathways is a better bet than Definium, citing first-mover advantage. Compass is developing COMP360 to treat severe and treatment-resistant depression.

DFTX stock has risen 169% year-to-date. 

Read More: Tesla Under Fresh Federal Scrutiny After Model 3 Crashes Into Home, Killing Woman

For updates and corrections, email newsroom[at]stocktwits[dot]com.