Tryptamine Therapeutics Limited [ASX:TYP]
Biotechnology
Tryptamine Therapeutics (ASX: TYP) – Precision Treatments for a Psychedelic Future
We initiate coverage on Tryptamine Therapeutics Limited (ASX: TYP) with a 12-month target price of A$0.09, representing a 202% upside from its current share price of A$0.029.
Creating shareholder value by developing unique treatments and new market opportunities
Tryptamine’s lead asset, TRP-8803, is a proprietary IV-infused psilocin solution that offers the unique value proposition of precision treatment in an evolving psychedelic drug sector. We see significant revenue generation potential in the under-penetrated psychedelic drugs market (expected to register a CAGR of ~14% over 2025-30). Tryptamine’s targeted indications include binge-eating disorder (BED), fibromyalgia, and irritable bowel syndrome (IBS), the prevalence rate of which are high. We expect Tryptamine to leverage the secular trend of increasing use of psychedelic drugs in neuropsychiatric disorders as well as its differentiated precision treatment and the multi-dimensional proprietary proposition to grow its business. The patent protection around formulation, method and product use in specific indications position the company well to gain competitive advantage over peers who are using oral psilocybin for their clinical studies. The company has five patent families under PCT (global filing); we anticipate more patent filings in the future. Tryptamine’s IV-infused psilocin offers significant therapeutic benefits over oral psilocybin including shorter treatment duration, quick reversibility and control on blood levels of psilocin. These benefits make Tryptamine’s lead asset a strong commercially viable product. These aspects create confidence in the company’s revenue growth prospects subject to successful commercial launch, which we expect by 2029. We also foresee long-term growth from multiple potential indications such as treatment resistant depression, anxiety and PTSD. We estimate Tryptamine’s peak sales of A$2.0 Bn by 2040.
Leadership with proven biotech and drug approval success
We think it is critical for Tryptamine to have a leadership team with a proven track record and deep pharma expertise, so that it can successfully navigate towards commercial launch. We gain confidence from CEO Jason Carroll’s rich experience in leadership roles at major pharma firms and his experience in navigating complex healthcare systems. Our confidence is further bolstered by the presence of experts like Dr. Robin Carhart-Harris, a distinguished professor in neurology and psychiatry at the University of California, in Tryptamine’s scientific advisory board.
Valuation of A$0.09 per Share
Using a blend of EV/Adjusted Peak Sales multiple and DCF methodology with a perpetual growth terminal value, we estimate Tryptamine’s intrinsic value at A$0.09 per share highlighting the significant upside potential.