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HC Wainwright has upgraded Bionomics (NASDAQ:BNOX) to buy, citing the company’s positive Phase 2 data for its drug candidate BNC210 in the treatment of post-traumatic stress disorder, or PTSD.
The investment bank said the strength of the data removes a “significant overhang” on the stock and was the “impetus” of its upgrading the stock to buy.
“Overall, BCN210’s profile has the opportunity to present physicians and patients with use potential in both the acute and chronic settings,” the bank said in a note released Thursday. It added that it saw the drug potentially getting FDA breakthrough therapy designation “as no new therapy has been approved in about 20 years for PTSD.”
HC Wainwright set its price target for the stock at $8.
Bionomics announced positive results from the Phase 2 trial early Thursday. The shares soared to close 244% higher at $3.37.