TD Cowen initiates Mentari stock with buy on migraine pipeline

TD Cowen has initiated coverage on Mentari Therapeutics (MTRI) with a buy rating, highlighting the company's migraine treatment pipeline focused on PACAP and CGRP pathways. Currently trading at $12.20, the stock has seen a 96% increase over the past six months, down from its 52-week high of $23.30. Migraine treatment options are limited, and TD Cowen believes Mentari's candidates could surpass the two-day efficacy benchmark of CGRP therapies by blocking both PACAP and CGRP pathways simultaneously.

The migraine treatment market is projected to exceed $10 billion by 2030, with a market capitalization of $7.33 billion for Mentari. The company's lead asset, MT-001, is an anti-PACAP antibody in Phase I trials, with safety and pharmacokinetic data expected in mid-2027. MT-002, a PACAP and CGRP bispecific antibody, is projected to have a 77-day half-life.

A second investigational new drug application is planned for Q1 2027, with Phase II trials beginning in early 2028. Approximately 50% of patients on CGRP therapies do not achieve at least a 50% reduction in monthly migraine days, highlighting the need for alternatives. Mentari's innovative approach has caught the attention of other analysts, including Stifel and Jefferies, who have also initiated coverage with a buy rating and a price target of $30.00.