Pasithea Therapeutics (KTTA) stock soars 229% - Know why?

Highlights

• Pasithea Therapeutics' (KTTA) wholly-owned subsidiary Pasithea Clinics got approval for its anti-depressant esketamine nasal spray, SPRAVATO.
  
  
• The KTTA stock jumped over 229% in intraday trading on Tuesday.
  
  
• Currently, only three clinics in the United Kingdom have been authorized to provide the treatment.

Shares of Pasithea Therapeutics Corp. (NASDAQ:KTTA) jumped more than 229% on Tuesday after its subsidiary Pasithea Clinics received approval for an anti-depressant nasal spray.

Pasithea Therapeutics on Tuesday said that its wholly-owned subsidiary Pasithea Clinics bagged approval for its esketamine nasal spray SPRAVATO used in treating depression in adults.

The California-based biotechnology company develops therapies for various mental health problems. The KTTA stock jumped 229.41% to US$7.28 at 12:15 am ET from its previous close.

Meanwhile, the company said that it has begun providing treatment with its esketamine nasal spray SPRAVATO at its facility in Knightsbridge, London. Currently, only three clinics in the United Kingdom have been authorized to provide the treatment.

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Pasithea Therapeutics CEO Tiago Reis Marques lauded the approval of SPRAVATO and said it is a significant achievement in addressing mental health problems in the UK.

He said that " depression is the leading cause for long-term disability" across the world and the current treatments have had limited success, while up to 30% of patients with depression do not respond to consecutive trials of antidepressant treatment.

Marques added that new treatment options against depression are urgently required.

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Stock performance and financials:

The California-based firm has a market cap of US$93.17 million. Its stock saw the highest price of US$4.19 and lowest price of US$2.10 in the last 52 weeks. The trading volume of KTTA was 211,465 on November 22.

For the three months ended on September 30, 2021, the firm reported a net loss of US$1.52 million against a loss of US$13.97 thousand in the comparable quarter of the previous year.

As of September 30, 2021, the firm had cash and cash equivalents of US$20.56 million compared to US$243.65 thousand as of December 31, 2020.

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Bottomline

The Managing Director of Pasithea Clinics in the UK, Yassine Bendiabdallah said that esketamine, when combine with psychiatric support, is safe and effective. "Due to some risks associated with this drug, patients treated in outpatient settings must be enrolled in a specific program. We are extremely proud to have been accredited to provide this treatment.” The KTTA stock tumbled 37.92% YTD.