Zacks SCR sees over 250% upside in pain therapy maker Ensysce Biosciences
Ensysce Biosciences has upside of more than 250%, based on the $29.50 per share valuation of Zacks Small-Cap Research (Zacks SCR). The company is developing treatments for severe pain relief that have the power of opioids but do not carry the risk of abuse. Its products could help to put an end to the opioid crisis in the U.S., Zacks SCR explains.
Details
Zacks SCR values Ensysce at $29.50 per share, for upside of 256%. Yesterday, Wednesday, January 22, the stock closed at $8.28 per share. Over the last 12 months, it is down more than 50%, despite gaining almost 27% over the last six months.
Ensysce is developing new treatments for chronic pain with the same properties as opioids but without the risk of abuse, Zacks SCR explains. Opioid abuse is a national crisis: According to the U.S. National Center for Health Statistics, it took more than 75,000 lives in 2021.
“Ensysce Biosciences continues to be one of the companies that we cover that we believe most of America would hope is successful and one we are becoming more convinced will achieve its goals. The opioid crisis remains a plague on the American public and is destroying families and entire communities,” Zacks SCR noted.
Ensysce products are now in phase I and phase II clinical trials.
“We also believe that investors who invest in such important work have the potential to be rewarded quite well as these solutions to a problem plaguing thousands of families come to fruition. We encourage investors to take a look at ENSC and consider the stock before the anticipated positive testing results come in,” Zacks SCR added.
About Ensysce Biosciences
Ensysce develops treatments for severe pain relief. Chronic pain affects more than 20% of the population, and pain is the leading cause of doctor visits worldwide, the company explains. The market for pain management drugs in the U.S. alone is estimated at $3.5 billion.
Ensysce claims that its products are nonaddictive thanks to two patented technologies. The first, called TAAP (trypsin-activated abuse protection), ensures that the drug will take effect only when it enters the intestine, with no opportunity for activation if injected, chewed, or snorted. The second technology, MPAR (multi-pill abuse resistance), can “turn off” the drug in the case of an overdose. To test it, the National Institute on Drug Abuse provided the company with a $14 million multi-year award, notes Zacks SCR. In January 2024, MPAR was granted “breakthrough therapy” designation by the U.S. Food and Drug Administration, the company recalled in its annual shareholder letter.
According to MarketWatch, Ensysce Biosciences is tracked by one analyst, who has a “buy” recommendation on the stock. His target price is $129 per share, almost 16 times current quotes.
