HELP Stock Gaps Higher, Then Fades, On $35 Barclays Target Ahead Of Q4 Psychedelic Drug Trial Results

• According to data from Koyfin, all 10 analysts covering HELP rate it a ‘Buy.’
• Investors are now awaiting data from the late-stage APPROACH study of HLP003. 
• If the data hold, Helus aims to file an application with the U.S. Food and Drug Administration (FDA) seeking approval in 2028.

Shares of Helus Pharma (HELP) opened on Friday at $15.15 and printed a new 52-week high before reversing gains after Barclays initiated coverage with an Overweight rating and a $35 price target ahead of upcoming trial results for its psychedelic drug.

By midday, the stock was trading near $12.50, down about 11%, after touching a session low around $12.10.

Wall Street Takeaway

Barclays’ new price target of $35 implies an upside of about 150% from the stock’s last close on Thursday around $14.

Barclays is not far off consensus. According to data from Koyfin, all 10 analysts covering HELP rate it a ‘Buy.’ The 12-month average price target on the stock is $41.40, implying a potential upside of about 195%.

Near-Term Catalysts

Helus develops novel serotonergic agonists (NSAs)—synthetic molecules designed to activate serotonin pathways linked to neuroplasticity—for mental health conditions, mainly depression and anxiety.

Investors are now awaiting data from the late-stage APPROACH study of HLP003 expected in the fourth quarter. The deuterated psilocin (the active form of psilocybin or the compound in magic mushrooms) drug is being tested as an add-on treatment for major depression and has FDA Breakthrough Therapy status. Enrollment finished in July.

A second Phase 3 trial, EMBRACE, plus a long-term extension study, come after that readout. If the data hold, Helus aims to file an application with the U.S. Food and Drug Administration seeking approval in 2028. HLP004, a deuterated DMT (a short-acting psychedelic) candidate for anxiety, remains earlier-stage after a mid-stage signal-finding study.

Helus closed a $50 million offering in late June to fund the late-stage work. Michael Halstead took the helm of the company in early August. Further, in mid-September, Executive Chair Eric So and Chief Growth Officer Paul Glavine each bought 100,000 shares on the open market, purchases of roughly $1.2 million apiece.

How Did HELP Retail Traders React?

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

A Stocktwits user said that they added more shares today in light of the selloff.

Another reiterated confidence in the impact of psychedelic drugs on mental health.

HELP stock has gained 53% year-to-date. 

Read More: LEN, ARRY Stocks Hit New Lows As Price Target Cuts Pile Up — What’s Driving The Selloff?

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