FLHLF - Filament Health (FLHLF) - Initiating Coverage With An Outperform Rating

Filament Health Is Developing Natural Psychedelic Botanical Drugs For Psychiatric Conditions. Filament Health has developed proprietary methods for producing naturally occurring psilocybin, psilocin, and other psychoactive compounds from plants and fungi. These compounds have been formulated for use in treating psychiatric conditions and mental health. It has three products that have received FDA approval to begin clinical testing in 1Q22.Focus On Natural Molecules. Filament Health is developing products based on the natural composition of molecules found in plants and fungi. These are purified formulations of natural compounds that have established use in modern society and indigenous cultures. The company has a patent estate covering the methods of extraction and purification through to the administration of the final formulations, making its products unique and difficult to copy.Products and Applications For Unmet Mental Health Conditions. Psychedelic compounds are structurally related to the neurotransmitter serotonin. The various compounds bind to the serotonin receptors with different affinities and have shown potential in treating mental illness. Filament Health has developed several products and formulations for use in treating depression, anxiety, and mental illnesses.Clinical Trials Are Scheduled For Early 2022. Filament Health has three products that will begin clinical trials at UCSF in early 2022. The first study will compare the effects of PEX010, its oral psilocybin, to PEX020 and PEX030, its oral psilocin delivered orally and sublingually. This study is designed to give a well-controlled comparison of the oral prodrug, the oral active compound, and the active compound delivered directly to the bloodstream. This will be the first clinical trial to test naturally-sourced psychedelic and the first direct administration of psilocin.Conclusion. We believe published clinical studies have shown evidence of potential efficacy in using psilocybin and other psychedelic compounds to treat mental health conditions. Our valuation for Filament Health is based on its patented methods for making natural products and the comparable value of the products scheduled to begin clinical trials. Based on a market capitalization of $300 million, our price target is $1.50 per share. Read More >>