Bright Minds Biosciences Inc (NASDAQ:DRUG) shares are trading higher again after soaring last week. The company on Monday announced a new collaboration with brain health-focused AI company Firefly Neuroscience.
What Happened: Bright Minds announced that it's collaborating with Firefly Neuroscience to provide a full analysis of the electroencephalogram (EEG) data in the company's BREAKTHROUGH study.
BREAKTHROUGH is an open-label Phase 2 clinical trial evaluating the safety, tolerability and efficacy of BMB-101 in adult patients with classic Absence Epilepsy and Developmental Epileptic Encephalopathy (DEE). BMB-101 is a novel scaffold 5-HT2C Gq-protein biased agonist developed using structure-based drug design.
"We believe BMB-101 has the potential to be a best-in-class 5-HT2C agonist. This compound is not only poised to make a significant impact in both the DEE and Absence Epilepsy communities, but also has broad applicability across the 30% of all epilepsy patients who experience drug resistance," said Ian McDonald, CEO of Bright Minds Biosciences.
The news comes a week after Bright Minds stock soared 1,445% in a single day despite a lack of company-specific news.
Last Tuesday, Bright Minds put out a press release noting that it was "unaware of any material changes in the Company's operations that would account for the recent increase in market activity."
Despite the commentary from management, Bright Minds shares trended sideways before making new highs again on Friday after the company announced a private placement at a price of $21.70 per share for up to $35 million in gross proceeds. Bright Minds said it intends to use the proceeds for research and development related to its drug development programs.
Bright Minds is considered a low-float stock with just 3.58 million shares available for public trading, according to Benzinga Pro. The company also had a market cap of less than $5 million before the move last week. Low-float, micro-cap stocks can be extremely volatile, which may help explain some of the recent volatility.
DRUG Price Action: Bright Minds shares were up 9.74% at $51.81 at the time of publication, according to Benzinga Pro.
This illustration was generated using artificial intelligence via Midjourney.
