Humanity has never before lived in a time with such promise; we no longer consider any ailment or problem unsolvable and envision a future in which current blights will soon be history.
Biotechnology is rapidly improving our lives and FSD (NASDAQ: HUGE) (CSE: HUGE) is cleverly building a portfolio of smart biotech solutions with $HUGE potential.
HUGE currently trades on the Nasdaq for well under $5.00, so you can load up for what could be your “moonshot” rocket ride to Planet Tendie.
The Wallstreet Betts/Reddit crowd will be trading NAS: HUGE when upcoming news catalysts begin hitting the wire, so you should be adding this to your biotech watchlists now.
As data analysis, mapping and processing goes next level, providing us insight and possible solutions to some of the most common and scary brain diseases still afflicting humans, 2021 will be known as year humanity tackled Alzheimer’s, one of the most debilitating brain traumas. The FDA granted ADUHELM accelerated approval, after it reduced one of the disease’s defining biomarkers by 59-71%, over 18 months of treatment.
Biogen (NAS:BIIB) was already trading in the stratosphere, $270/share, then news broke and it almost hit $470. That’s just like 100’s of other companies, in the hottest ever biotech market.
Imagine what happens when a low-priced stock, with only 36 million issued and outstanding, little-to-no debt, and more than $40 million in cash, acquires a psychedelics inspired biotechnology company that’s developing novel molecules with the goal of addressing “total brain health” and challenging neurodegenerative diseases like Multiple Sclerosis (MS)?
“Estimated global sales for MS treatments today range from about $21 billion to $28 billion.” investors.com
FSD (NAS/CSE:HUGE) made its entry into this space with the announcement of its all stock acquisition of Lucid Psycheceuticals (Lucid).
One of the most promising fields in a new frontier of medicine; New Chemical Entities (NCEs) are novel molecules and combinations that hold the potential to treat mental health disorders and neurodegenerative diseases in a new way.
“Lucid licensed worldwide exclusive rights to a patent portfolio of preclinical new chemical entities from the University Health Network (UHN), a world-leading research hospital and North America’s largest health research organization.”
Lucid’s co-founder and CEO, Dr. Lakshmi Kotra is a Professor of Medicinal Chemistry at the University of Toronto and senior scientist at UHN’s Krembil Brain Institute and is scheduled to transition to the lead role for FSD’s therapeutics development pipeline in Psychedelics. A more qualified expert to lead FSD’s efforts may not exist.
“Depression, anxiety, dementia and similar conditions often are early symptoms to more serious neurodegenerative diseases, such as Alzheimer’s disease and multiple sclerosis” BioTuesdays
Lucid’s first mental health target is major depressive disorder that’s characterized by depressed mood or loss of interest in pleasure for at least two weeks, as well as periods of remission and relapse during a person’s life. Major depressive disorder affects 13 million adults, just in the U.S.
MS, Lucid’s initial neurodegenerative target, is a chronic inflammatory and neurodegenerative disorder of the central nervous system, which affects approximately 2.5 million.
Currently, no therapies significantly affect remyelination, but Lucid’s lead compound for the potential prevention and reversal of Myelin degradation in the brain and hence can be used to treat indications like Progressive MS etc., Lucid-21-302, is a new chemical entity, based on more than 10 years of research data and Dr. Kotra stated that “We have obtained convincing preclinical data in multiple MS animal models.”
Research studies suggest that the Psychedelic therapeutics Market size is projected to grow from $4.75B, in 2020, to $10.75B, by 2027; growing at a CAGR of 12.36% during 2021-27.
Trailblazers, like FSD and its efforts to reverse Myelin degradation, have no direct comparisons.
Assuming some market penetration, down the road, and that it trades on par with the NYU Stern School of Business, PE Ratio for US markets Drugs/Biotech industry, of 31, it doesn’t take much for it to reach long term valuations that are too crazy high for me to print.
Even though, as Forbes stated in How to Value a Young Company, “Placing a valuation on young companies is a tricky, subjective game,” the Market Approach is probably the best tool to estimate FSD’s “earning potential based on theoretical demand in the market.”
To use this model, Forbes says that the “the target market should be at least $500 million in potential sales” and FSD would like to tackle $billion markets. Other key metrics include the barriers to entry and the targeting of numerous markets with novel solutions.
By developing novel molecules and combinations, like FSD201 and Lucid-21-302, HUGE is positioned for big success. Despite the fact that the necessary legal framework is just now catching up with this trend, the smart players are trying to get ahead of the curve.
For example, COMPASS Pathways (NASDAQ: CMPS), which is developing a proprietary psilocybin formulation for treatment-resistant depression, has a 1.4B market cap- 23X HUGE.
Even Eliem Therapeutics (NASDAQ: ELYM), which IPO’ed a few weeks ago, has a ~$680M market cap. That’s 11X more than HUGE’s market cap!
HUGE’s $60M market cap suggests that, once the street learns about what it’s up to, it should make some massive moves that parallel its achievements.
Simple math shows the possibilities of HUGE on a valuation basis alone could easily justify 10x today’s prices or more.
No doubt, there will be plenty of readers who’ll agree with this analysis, but their smooth brains will not act, so they’re going to get laughed at again, just like when their lucky friends ploughed all of their stimmies into some unknown crypto, with no DD, and rode them to the moon.
Plus, since aggressive exploration of mergers and acquisitions is engrained in management’s DNA, I expect to hear about upcoming moves, including licensing opportunities in legal psychedelic therapeutics, which are in line with FSD’s strategic vision to expand the protocol development pipeline and generate new opportunities to create significant Shareholder value.
From controlling disease processes to simply feeling better, we’re just beginning to appreciate how inflammation and anti-inflammatory treatments affect our everyday lives.
FSD’s leadership team has therapeutic protocol discovery and development professionals with diverse industry knowledge and the depth required to pursue the Company’s strategic vision.
Unlike the meme plays, HUGE offers a strong value proposition for fundies who dig through the financial statements. FSD’s cash balance sheet is nearly on par with its market cap, so no FUD.
FSD reported about $40M in cash, or equivalents, on its balance sheet, and may sell its non-core real estate asset, adding millions more to its war chest. At these prices, it’s like an even cash exchange, plus shareholders receive a free bonus coupon for a trailblazing high upside company.
News flow often drives stocks and innovative therapies to help address today’s health crisis is gaining momentum. The biotech wealth generating bonanza isn’t ending anytime soon and the trailblazers should be handsomely rewarded for positive milestones, like successful trials, and other fruitful developments.
Get ahead of the curve, when Psychedelic stocks will be the rage and become the hot Reddit play, and the industry exposure demand causes massive inflows.
The bottom line is that you need to hurry, because the new management team is making big $HUGE moves and you want to be here, before their next big breakthrough.
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