MIRA Pharmaceuticals jumps 20% on successful trial of ketamine analog

Quotes on MIRA Pharmaceuticals, a developer of treatments for neurological and neuropsychiatric disorders, jumped almost 20% yesterday, April 16, before giving back some of the gains in after-hours trading. The surge came after the company reported positive animal trial results of its drug candidate for diabetic neuropathy, a condition in which nerves are damaged due to high blood sugar levels.

Yesterday, MIRA jumped nearly 20% on the Nasdaq to close at $1.07 per share before giving back 11.2% in after-hours trading.

The surge came after the pharmaceutical company announced positive trial results for its drug Ketamir-2, which had been tested on rats with artificially induced diabetes, the symptoms of which, including neuropathic pain, resembled human diabetic pathology. Ketamir-2 is an oral ketamine analog designed to treat diabetic neuropathy, where nerves in various parts of the body are damaged due to elevated blood sugar. The study showed that Ketamir-2 led to a significant reduction in symptoms in rats. MIRA also stated that in previous trials, its drug outperformed commonly used treatments for neuralgia, such as gabapentin and pregabalin, and did not cause the psychedelic side effects associated with traditional ketamine.

The company plans to begin phase II clinical trials of Ketamir-2 with human patients with diabetic neuropathy by the end of 2025, MIRA CEO Erez Aminov was quoted as saying in the press release.

The new trial results are pivotal to the advancement of Ketamir-2, which would be a huge step forward for patients and suggest a potential turning point for the stock, Zacks Small-Cap Research argues in a report on the company. The investing analysis firm values MIRA at $17.75 per share (almost 17 times the current market price) and recommends investors consider buying the stock before the company announces more positive results or a new partnership.

According to MarketWatch, between the two analysts covering MIRA, there is one “buy” and one “hold” rating. The average target price is $17.38 per share.

MIRA Pharmaceuticals is a pharmaceutical company developing new treatments for neurological and neuropsychiatric disorders, with a special focus on ketamine and pharmaceutical marijuana analogs.

One of its lead candidates is MIRA-55, an oral pharmaceutical marijuana analog for reducing anxiety and improving cognitive performance, potentially without side effects like increased appetite or paranoia. The other lead candidate is Ketamir-2.

In March, MIRA announced its intent to acquire SKNY Pharmaceuticals, along with the rights to its drug candidate for obesity and smoking cessation. Under the terms of the deal, SKNY shareholders will be granted MIRA shares, while MIRA will receive a $5 million capital infusion in cash or assets from SKNY at closing.