William Blair initiated research coverage of VistaGen Therapeutics, Inc. (VTGN $3.65), a clinical-stage biopharmaceutical company focused on developing next-generation treatment options for social anxiety disorder (SAD) and other neuropsychiatric disorders.
Analyst Tim Lugo believes that the company’s lead asset, fasedienol (PH94B) in development for the treatment of SAD, has shown strong promising efficacy in a late-stage study and that it is a blockbuster therapy in development, with peak sales estimated to exceed $1 billion.
“Fasedienol offers a new nonsystemic mechanism of action in the treatment of SAD, which affects about 10% of the U.S. population, with 6 million adults being treated by a physician and often unsatisfied with therapies available,” said Lugo. “In our opinion, fasedienol is a significantly differentiated product that is set to transform the anxiety landscape given its minimal systemic exposure, rapid onset of effect, and lack of abuse potential. The unique rapid onset is likely to be disruptive and alter the prophylactic treatment paradigm consisting of ineffective SSRIs and SNRIs.”
Lugo added, “Beyond fasedienol, VistaGen is developing a number of pherines that look promising, including itruvone for depression, and we believe the success of fasedienol should translate to additional value as the company represents the innovator of the pherine class.”
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