Should You Invest in Atai Life Sciences Stock?

Atai Life Sciences (NASDAQ: ATAI) is a business with a wealth of promising looking therapeutic candidates. The business is known for championing alternative treatments for mental health problems, including psychedelics and stimulants such as ketamine, MDMA and DMT.

But is Atai the right life sciences stock for you?

What is Atai Life Sciences?

Atai Life Sciences is a Berlin-based company that was founded in 2018. The company operates as a clinical-stage biopharmaceutical company through its ATAI Life Sciences AG subsidiary.

It engages in developing various therapeutic candidates that focus on various mental health disorders. The company’s therapeutic candidates include PCN-101, a subcutaneous formulation of R-ketamine for treatment-resistant depression (TRD).

Other candidates include:

• RL-007, which is for the treatment of cognitive impairment associated with schizophrenia.

• DMX-1002 an oral formulation of ibogaine for treating opioid use disorder.

• GRX-917 an oral formulation of a deuterated version of etifoxine for the generalized anxiety disorder treatment.

• NN-101, a novel intranasal formulation of N-acetylcysteine to treat mild traumatic brain injuries.

• VLS-01, a formulation of N,N-dimethyltryptamine for treating treatment-resistant depression.

• EMP-01 an oral formulation of an 3,4-methyl enedioxy methamphetamine for the treatment of post-traumatic stress disorder.

• RLS-01, a formulation of Salvinorin A for treatment-resistant depression.

• KUR-101 an oral formulation of deuterated mitragynine to treat opioid use disorder.

• DMX-1001 an oral formulation of noribogaine for the treatment of opioid use disorder.

The company was formerly known as Adripa Holding B.V.

How Does Atai Make Money?

The company does not regularly record revenue as it remains at the clinical stage and has yet to reach commercialization with any of its candidates.

However, the company has earned revenue through licensing, earning more than $20m in 2021, which was related to proceeds received from affiliate company Perception Neuroscience’s license and collaboration agreement with Otsuka Pharmaceutical.

ATAI Stock Financials

Atai Life Sciences stock has a price to book value of 1.81, compared to an industry average of 6.19 across pharmaceutical stocks, according to CSIMarket. This could indicate that the stock is undervalued.

Across the year to date, Atai Life Sciences’ stock price has declined by 51.7% at the time of writing, falling to $3.70. Since Atai Life Science’s IPO in June of 2021, the stock price has fallen consistently from its initial high of $19.45. It has not since climbed this high and has hit a low of $2.95 in the meantime.

The business’ most recent quarterly results showed:

ATAI Investment Risk

The first thing to note when it comes to risk is that Atai is a clinical-stage company, with no products currently at the commercial stage. This means no revenue from sales for the foreseeable future, and means there is an increased likelihood that the company could run out of…