We expect investors to focus on medicine of the mindit is (MNMD – Free Report) near-term strategic priorities and its focus on advancing its pipeline programs which should be reflected in its third quarter 2022 performance. These factors have the highest likelihood of driving value in the near term.
Mind Medicine’s earnings beat expectations in three of the last four quarters and missed the same on the remaining occasion, with the average negative surprise being 20%. In the last reported quarter, Mind Medicine posted a 20% earnings surprise.
In the year so far, shares of Mind Medicine are down 86.4% compared to the industry’s 24.6% plunge.
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Let’s see how things went for the quarter to report.
Factors to Consider
Mind Medicine is a biopharmaceutical company focused on the development of products targeting the serotonin, dopamine and acetylcholine systems. The company currently has three product candidates in its pipeline, namely MM-120, MM-110 and MM-402, which are Mind Medicine’s lead products.
During the third quarter of 2022, the company took steps to advance its MM-120 program for generalized anxiety disorder (“GAD”) and attention deficit hyperactivity disorder (“ADHD”) and its MM -402 and R (-)-MDMA program.
Mind Medicine in August announced that it had administered the first patient in its Phase IIb dose-optimized study of MM-120 (200 mcg), for the treatment of GAD. The results of the phase II study will determine the dose selection and development strategy for the candidate’s phase III study.
In May, the company announced positive top results from a placebo-controlled Phase I study of MM-110 evaluating the candidate’s safety, tolerability, pharmacokinetics and neurocognitive effects. The results of the study demonstrated the potential clinical utility of MM-110 in safely alleviating the symptoms of opioid withdrawal. The results of the phase I study determined the dose and design of the candidate’s phase II study.
The company plans to develop MM-110 in a Phase II clinical study and is seeking collaborations with third parties to advance the program, details of which are expected in the third quarter earnings call.
For its candidate MM-402, the company intends to initiate a phase I study at the end of 2023. In addition, the company intends to initiate a phase I study for its candidate R(-)-MDMD for autism spectrum disorder (“ASD”) in the third quarter of 2023.
In the second quarter, management decided to reduce the allocation of resources to early-stage research programs. In the quarter to be reported, operating expenses should therefore have decreased. The company is seeking significant resources to be allocated to high priority corporate programs.
Changes after the quarter
The company in September announced that it had dosed the first patient in an investigator-initiated Phase I study evaluating the effects of MDMA-like substances, including MDA, Lys-MDMA, Lys-MDA, against a placebo in healthy volunteers.
Revenue whisper
Our proven model predicts a beating of benefits for Mind Medicine this time around. The combination of a positive Earnings ESP and a Zacks rank of #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of beating Earnings. You can discover the best stocks to buy or sell before they’re flagged with our earnings ESP filter.
ESP Earnings: Mind Medicine MindMed has a gain ESP of +5.71% as the Zacks consensus estimate is lower than the most accurate estimate, which is pegged to a loss of 55 cents.
Zack’s Ranking: Mind Medicine currently carries a Zacks Rank #2 (Buy). You can see today’s full list of Zacks #1 Rank stocks here.
Actions to Consider
Here are a few more stocks in the same sector that have the right combination of elements to beat on earnings this time around:
AVEO Pharmaceuticals (AVEO – Free Report) has a +8.16% Earnings ESP and a #2 Zacks Rank.
Aveo shares are up 215.1% this year so far. AVEO has exceeded earnings estimates in three of the past four quarters, missing the same in one. It has a profit surprise of 13.10%, on average.
Edited by Medicine (EDIT – Free Report) has a +3.47% Earnings ESP and a Zacks Rank #2.
Editas shares are down 56.2% in the year to date. EDIT has exceeded earnings expectations in each of the past four quarters, with the average surprise being 17.82%.
Immunocore (IMCR – Free Report) has a Win ESP of 73.75% and a Zacks Rank #3 (Hold).
Immunocore’s stock is up 69.7% in the year to date. IMCR has exceeded earnings estimates in three of the past four quarters, missing the same in one. It has an average earnings surprise of 33.28%
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