The Ketamine Infusion Business at Pasithea (KTTA) to Treat Depression Looks Like It Could Hit the Ground Running
Pasithea Therapeutics Corp. (NASDAQ: KTTA) is a biotechnology company focused on treatments for psychiatric and neurological disorders.
Current price $2.74/share (as of 10:00 am EDT 10-14-21)
After closing at $2.69/share in the Wednesday session, KTTA shares gapped at the open to $2.77 in today’s session.
I want to talk more about the KTTA ketamine infusion business because it will generate the near-term revenues for the company. Infusion means an IV injection that can be done in a clinical setting or in a patient’s home. In psychiatry, a typical treatment plan consists of up to six infusions in the interval of two to three weeks.
In news that broke this morning, KTTA announced the opening of its first ketamine therapy clinic in the UK. “This launch marks a significant milestone for Pasithea Clinics and for patients in the U.K. suffering with mental health conditions. We look forward to growing our specialty clinics network while we simultaneously progress with our drug development program to move the needle forward for better mental health care,” stated CEO, Dr. Reis Marques.
I knew the launch of the ketamine infusion business for KTTA was going to happen near term, but I didn’t think it would happen this quickly. The launch of the clinic signal immediate revenues for KTTA and that may act as a catalyst for the company value.
The company already has two clinics lined up to partner with. IV Doc and Zen Healthcare. The IV Doc has locations in thirty-six cities, mainly in the US. They offer a myriad of different IV services, offered in the home, hotel, or office. Ketamine infusions would be added to their menu of treatments for flu, jet lag, upset stomach and food poisoning, covid testing, hangover, fatigue, wellness vitamin packed drips, and many more, provided by licensed physicians and registered nurses.
The process of obtaining an IV Doc infusion involves calling for an appointment and arranging billing information, having a phone or video consult with a doctor, and then a medical professional is dispatched to your location.
Pasithea (KTTA) is a New IPO and is Targeting Treatment-Resistant Depression and PTSD Using Ketamine Infusions.
The company recently completed its IPO of 4,800,000 units, with each unit consisting of one share of common stock and one warrant at an exercise price of $5.00 per unit, for aggregate gross proceeds of approximately $24.0 million. The company’s common stock and warrants began trading on the NASDAQ on September 15, 2021, under the symbols KTTA and KTTAW, respectively.
Pasithea Therapeutics Corp. (NASDAQ: KTTA) is a biotechnology company focused on treatments for psychiatric and neurological disorders.
Current price $2.69/share (as of market close 10-12-21)
New NASDAQ listing only a month ago.
Only 13M shares outstanding.
Insiders own 52% of the outstanding shares.
Growing market sector.
KTTA shares have dropped in price since the IPO one month ago. This drop is a common occurrence, but it creates an entry opportunity. The initial investors paid $5.00 per share and the warrants are exercisable at $5.00 per. We note that the KTTA shares have begun to get traction after their post IPO price drop.
It’s estimated that up to 64 million Americans suffer from some sort of mental health issue, a number that has been exacerbated by the pandemic. The market for treatment of mental health issues is expected to reach $19B over the next five years.The Major Depressive Disorder (MDD) treatment sector is underwhelmingly successful. Estimates show that only half of the people suffering depression seek help and of those who do, only half of those have success with traditional antidepressants. Fortunately, MDD is now looked at as an illness, not a weakness and new treatment methods are coming to the forefront.
What differentiates KTTA from other new companies treating MDD and other psychiatric disorders is that KTTA seeks to develop drugs to treat the underlying brain issues that can manifest into these conditions (more on that below). At this point, if you’ve been involved with biopharma start-ups before, you may be thinking that here’s another biopharma that may take five years to generate revenues.
The cycle of new drug development can be exhausting with pre-clinical lab studies, animal trials, three stages of human clinical trials, FDA approval, then commercialization, all fueled by endless rounds of dilutive financing.
But Pasithea has a plan for multiple verticals, one that may generate revenues in the near term and could fund the development of the drugs they seek to bring to market. I want to begin by describing the vertical that involves near term revenue and it involves ketamine. Ketamine has been used medically since it was approved by the FDA in 1970. It induces dissociative anesthesia, a trance-like state providing pain relief, sedation, and amnesia.
In controlled doses ketamine can be effective in treating MDD, PTSD, and other neurological disorders and KTTA wants to start a ketamine infusion business. Intravenous ketamine infusion (through an IV) as a treatment for depression and PTSD has become increasingly popular and is receiving increased backing from regulatory authorities.
The company has developed this business in the form of advisory services related to intravenous ketamine infusion to registered mental health clinics. It has gone ahead and established partnerships in various clinic chains across Los Angeles, New York, and London. The advisory services will involve helping registered healthcare providers to assess mental patients and help administer intravenous infusions of ketamine to help the patients deal with their psychological issues.
Pasithea’s clinic partners are expected to initially be Zen Healthcare and The IV Doc. Its probable that KTTA will expand the clinical partners base quickly. The IV Doc, based in the US, has been in business for seven years and has serviced 50,000 patients. Zen Healthcare, based in London, has been in business for five years and has serviced 30,000 patients. Patients will receive an initial assessment, a ketamine infusion, then a follow up. These new clinical partners specialize in “in home” drug infusions.
Pasithea management team:
Executive Chairman and Co-Founder, Professor Lawrence Steinman is currently the George A Zimmermann Endowed Chair in the Neurology Department at Stanford University.
Chief Executive Officer, Dr. Tiago Reis Marques is a fellow at Imperial College London and a lecturer at the Institute of Psychiatry, King’s College London. Dr. Marques is also a psychiatrist at Maudsley Hospital.
The ketamine clinic business, though it could pay the bills at KTTA initially, is not the main focus of the company. Their main pursuit will be the development of drugs to treat the underlying brain disorders the manifest in neurological disorders such as MDD and schizophrenia.
Pasithea’s operations are focused on developing drugs that target the pathophysiology underlying psychiatric and neurological disorders and it is developing novel pharmacological agents that have an increased level of effectiveness on patients suffering from illnesses such as depression, PTSD, schizophrenia, and others.
Recently KTTA has teamed with Evotec, a life sciences company engaged in finding New Chemical Entities (NCE) to treat many indications. Evotec has a network of partners including all Top 20 Pharma, and over 800 biotechnology companies, academic institutions, as well as other healthcare stakeholders. Initially, Pasithea will work with Evotec to advance small molecule therapeutics with a focus on a specific neuroinflammatory pathway implicated in the neurobiology of depression and schizophrenia.
“This is a significant step on our drug development path to ultimately develop new molecular entities to improve the lives of those suffering with brain disorders,” said Dr. Tiago Reis Marques, chief executive officer of Pasithea,”
About Pasithea Therapeutics Corp.
Pasithea Therapeutics Corp. is a biotechnology company focused on the research and discovery of new and effective treatments for psychiatric and neurological disorders. Its biotech operations will focus on developing drugs that target the pathophysiology underlying such disorders, with the goal of developing new pharmacological agents that display significant advantages over conventional therapies with respect to efficacy and tolerability.
The Company’s secondary operations focus on providing business support services to anti-depression clinics in the United Kingdom and in the United States. The Company’s operations in the United Kingdom will involve providing business support services to registered healthcare providers who will assess patients, and if appropriate, administer intravenous infusions of ketamine, and the Company’s operations in the United States will involve providing business support services to entities that furnish similar services.
The Traders News Group
Do we disclose any information to outside parties?
What information do we collect?
We collect information from you when you subscribe to our newsletter or fill out a form on one of our social platforms. This includes your email address and or mobile phone number.
When registering on our site, as appropriate, you may be asked to enter your: e-mail address and or mobile number.
What do we use your information for?
When we collect your email or mobile number it is used for one purpose to send you the information you requested about small cap stocks. Please read our disclaimer carefully before viewing our emails.
Your information, whether public or private, will not be sold, exchanged, transferred, or given to any other company for any reason whatsoever, other than for the express purpose of delivering the information on small cap stocks that you requested.
We send periodic emails
The email address you provide may be used to send you information, the small acp stock reports you requested, respond to inquiries, and/or other requests or questions.
How do we protect your information?
We implement a variety of security measures to maintain the safety of your personal information when you enter, submit, your email address. We use secure third parties to send email and sms messages to you.
Because we value your privacy we have taken the necessary precautions to be in compliance with the California Online Privacy Protection Act.
Traders News Source is a wholly owned subsidiary of Traders News Source LLC, herein referred to as TNS LLC.
Our reports/releases are a commercial advertisement and are for general information purposes ONLY. We are engaged in the business of marketing and advertising companies for monetary compensation. Never invest in any stock featured on our site or emails unless you can afford to lose your entire investment. The disclaimer is to be read and fully understood before using our services, joining our site or our email/blog list as well as any social networking platforms we may use.
Please Note: TNS LLC and its employees are not a registered investment advisor, Broker Dealer or a member of any association for other research providers in any jurisdiction whatsoever.
Release of Liability: Through use of this website viewing or using you agree to hold TNS LLC, its operators owners and employees harmless and to completely release them from any and all liability due to any and all loss (monetary or otherwise), damage (monetary or otherwise), or injury (monetary or otherwise) that you may incur. The information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of the available data. TNS LLC encourages readers and investors to supplement the information in these reports with independent research and other professional advice. All information on featured companies is provided by the companies profiled, or is available from public sources and TNS LLC makes no representations, warranties or guarantees as to the accuracy or completeness of the disclosure by the profiled companies. None of the materials or advertisements herein constitute offers or solicitations to purchase or sell securities of the companies profiled herein and any decision to invest in any such company or other financial decisions should not be made based upon the information provide herein. Instead TNS LLC strongly urges you conduct a complete and independent investigation of the respective companies and consideration of all pertinent risks. Readers are advised to review SEC periodic reports: Forms 10-Q, 10K, Form 8-K, insider reports, Forms 3, 4, 5 Schedule 13D. TNS LLC is compliant with the Can Spam Act of 2003. TNS LLC does not offer such advice or analysis, and TNS LLC further urges you to consult your own independent tax, business, financial and investment advisors. Investing in micro-cap and growth securities is highly speculative and carries an extremely high degree of risk. It is possible that an investors investment may be lost or impaired due to the speculative nature of the companies profiled.
The Private Securities Litigation Reform Act of 1995 provides investors a safe harbor in regard to forward-looking statements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance are not statements of historical fact may be forward looking statements. Forward looking statements are based on expectations, estimates, and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward looking statements in this action may be identified through use of words such as projects, foresee, expects, will, anticipates, estimates, believes, understands, or that by statements indicating certain actions & quote; may, could, or might occur. Understand there is no guarantee past performance will be indicative of future results.
In preparing this publication, TNS LLC has relied upon information supplied by its customers, publicly available information and press releases which it believes to be reliable; however, such reliability cannot be guaranteed. Investors should not rely on the information contained in this website. Rather, investors should use the information contained in this website as a starting point for doing additional independent research on the featured companies. The owners and operators of this website have been compensated twenty two thousand five hundred dollars cash via bank wire for our distributed opinions this week on ktta. The advertisements in this website are believed to be reliable, however, TNS LLC and its owners, affiliates, subsidiaries, officers, directors, representatives and agents disclaim any liability as to the completeness or accuracy of the information contained in any advertisement and for any omissions of materials facts from such advertisement. TNS LLC is not responsible for any claims made by the companies advertised herein, nor is TNS LLC responsible for any other promotional firm, its program or its structure.
TNS LLC is not affiliated with any exchange, electronic quotation system, the Securities Exchange Commission or FINRA. TNS LLC is not a Broker/Dealer and does not engage in high frequency trading.