Vistagen upgraded to Buy at Maxim after SAD trial succeeds

Maxim upgraded Vistagen to Buy from Hold with a $30 price target after the company reported positive Phase 3 results from its PALISADE-2 study of fasedienol in social anxiety disorder, or SAD. The analyst, who notes shares were up about 850% on the news, lowers the revenue risk adjustment in the firm’s model to 50% from 90% based on the PALISADE-2 result combined with both prior data in the open-label extension study and positive interactions with the FDA on the path forward for fasedienol. The PALISADE-2 result is “significant” as it met its primary, secondary and exploratory endpoints and “importantly” the trial had the same design, protocol and stat-plan as the prior PALISADE-1 study which missed its endpoints in July 2022, the analyst tells investors.