On Friday, Roth/MKM initiated coverage on Cingulate (NASDAQ:CING), assigning a Buy rating to the stock with a price target of $12.00, significantly above the current trading price of $4.31. This positive outlook is based on a Discounted Cash Flow (DCF) analysis and the promising Phase 3 data of Cingulate's CTx-1301, which has shown effectiveness for approximately 16 hours in patients with Attention Deficit Hyperactivity Disorder (ADHD).
The United States Target Addressable Market (TAM) for ADHD is estimated to be around 17 million individuals. Cingulate's current financial position, with a pro forma cash balance of approximately $15 million, is expected to sustain the company into the third quarter of 2025. The company maintains solid short-term liquidity with a strong current ratio of 7.35 and more cash than debt on its balance sheet.
The analyst projects that CTx-1301 could achieve sales of $1.6 billion by the year 2035, indicating significant revenue potential for Cingulate. The drug's industry-leading average effect size in treating ADHD could position it as a strong contender in the market. The stock, which has shown a negative beta of -0.86, tends to move counter to market trends, potentially offering portfolio diversification benefits.
In other recent developments, Cingulate Inc. has increased its At The Market (ATM) offering price and raised approximately $11.7 million in capital, extending its operational runway into Q2 2025. This funding aligns with the company's preparation for the filing of a New Drug Application (NDA) for CTx-1301, targeted for potential FDA approval by mid-2025. Additionally, the company has secured a European patent for CTx-1301, extending its market reach to up to 30 European territories.
