VistaGen Therapeutics Inc (VTGN)

[StockLogistics]

This was posted as stock analysis on 7/20/22 (follow the prose):

““2 “Strong Buy” Penny Stocks That Could Go Boom

Michael Marcus (Author)

Between the Fed’s aggressive policy tightening to rein in inflation and deteriorating economic data, volatility has become a seemingly ever-present facet of the stock market. While the current economic landscape has spurred fear among investors, others view market volatility as a unique buying opportunity.

Opportunity is the key word – and sometimes the hardest thing for investors to see. To find names that can deliver solid returns and now come with a bargain price tag, investors will often turn to penny stocks, or those trading for less than $5 per share.

Sure, there could be a very good reason these tickers are so affordable, but should there be even minor share price appreciation, massive percentage gains could materialize, along with hefty profits for investors.

So, how are investors supposed to determine which names have what it takes to make a comeback? Follow the pros.

Using TipRanks’ database, we were able to pinpoint two promising penny stocks, according to Wall Street analysts. Both tickers boast a Strong Buy consensus rating and could climb over 300% higher in the year ahead.

VistaGen Therapeutics (VTGN)

We’ll start with VistaGen, a biopharmaceutical research company with a focus on disorders of the central nervous system. The company’s leading programs are new treatments for anxiety and depression, serious conditions with large potential patient bases. According to recent governmental health authority data, some 264 million people worldwide suffer from depression-related disorders, 19.4 million US adults have experienced at least one major depressive episode, and some 25 million people suffer from social anxiety disorders (SADs) in the US alone. This is the population that VistaGen aims to help.

The company has three main drug candidate programs, each one with a different pharmacological mode of action and target condition. The leading candidate is PH94B, a new treatment for social anxiety disorder. The drug, administered by nasal spray, is currently undergoing the PALISADE clinical trials. PALISADE-1, a phase 3 study that followed 208 patients across 15 clinical sites in the US, is focused on the use of PH94B as an acute treatment for rapid onset anxiety in adults. VistaGen announced last month that the study is now complete, and topline results will be available this year. PALISADE-2, another phase 3 trial of identical size and scope, in still underway, with topline results expected in late 2022. PH94B has been granted ‘fast track’ status by the FDA.

The other two clinical programs, PH10 and AV-101, are less advanced. PH10 is under development as a treatment for depression, and is also administered as a nasal spray. An exploratory phase 2a trial showed promise, and VistaGen is assembling an Investigational New Drug application for the FDA, to gain approval for a phase 2b clinical trial of PH10 in the treatment of major depressive disorder.

AV-101, a drug candidate being studies as a treatment for neurological disorders, is the subject of a phase 1b drug-drug interaction study, in combination with probenecid. AV-101 is an orally dosed product, and VistaGen is considering further trials as a combination therapy with probenecid.

Currently going for only $0.82 apiece, at least one member of the Street believes that now is the right time to snap up shares.

Baird’s Brian Skorney has reviewed VistaGen’s current position and sees plenty to be optimistic about. The key point, in his view, is the soon-to-be-released data from PALISADE-1, which should give investors reason to buy in.

“We continue to view the inbound top-line readout, expected no later than mid-August, as a crucial catalyst for the PH94B opportunity in SAD. We continue to think the existing data support the expectation that the study will hit on its primary endpoint, offering a favorable risk/reward at the current valuation,” Skorney opined.

“We continue to see substantial upside potential with PH94B in SAD and other forms of anxiety disorders, and believe current valuation of VTGN underestimates the clinical proof of concept and the commercial potential,” the analyst added.

To this end, Skorney rates VTGN an Outperform (i.e. Buy), and his price target, at $9, suggests just how much he expects that outperformance: up to 997% in the coming year. (To watch Skorney’s track record, click here)

Other analysts are on the same page. With 2 additional Buy ratings, the word on the Street is that VTGN is a Strong Buy. On top of this, the average price target is $7, suggesting robust growth of ~754%. (See VTGN stock forecast on TipRanks)”

https://www.tipranks.com/news/article/2-strong-buy-penny-stocks-that-could-go-boom-3?utm_source=advfn.com&utm_medium=referral

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