Solvonis Therapeutics is an innovative biotechnology company focused on developing groundbreaking medicines for addiction and mental health disorders. The current focus is on novel therapeutics to address: Alcohol Use Disorder (AUD), and Post-Traumatic Stress Disorder (PTSD). The former impacts c. 5% of the global population. The therapeutic approach for AUD is a first-of-its-kind combination therapy combining IV ketamine (an NMDA receptor antagonist) with copyrighted manualized relapse prevention cognitive behavioural therapy (CBT). This approach targets both the biological and psychosocial aspects of AUD, an approach which studies have confirmed results in better outcomes than either alone. The business strategy is to utilise an efficient and de-risked model through repurposing approved drugs and leveraging accelerated regulatory pathways. The commercial strategy is to out license at appropriate inflection points to accelerate value creation. We initiate with a BUY recommendation and a PT of 0.3p using our risk adjusted valuation of the pipeline.
