HC Wainwright has upgraded Bionomics (NASDAQ:BNOX) to buy after the company released positive Phase 2 data for its drug candidate BNC210, which is being used to treat post-traumatic stress disorder (PTSD). The investment bank believes that the strength of the data removes a significant overhang on the stock, leading to its decision to upgrade. HC Wainwright also stated that the drug has the potential to receive FDA breakthrough therapy designation, as there haven’t been any new therapies approved for PTSD in the last 20 years.
The upgrade comes after Bionomics announced positive results from its Phase 2 trial, causing the stock to close 244% higher at $3.37. HC Wainwright has set a price target of $8 for the stock, reflecting its optimism about the potential of BNC210. The bank believes that the drug has the opportunity to be used in both acute and chronic settings, presenting physicians and patients with a useful treatment option.
This upgrade is significant for Bionomics as it validates the positive results from the Phase 2 trial and increases investor confidence in the company. If BNC210 receives FDA breakthrough therapy designation, it could further boost the stock’s value, as it would indicate that the drug has the potential to address an unmet medical need. Bionomics will likely continue to gain attention from investors and analysts as it progresses in its development of BNC210 as a treatment for PTSD.