HELP Stock Crashes On Anxiety Trial Results, But Here’s Why Jefferies Sees Up To 200% Upside

Jefferies highlighted the Phase 3 Approach trial for depression drug HLP003 as the next key catalyst for the stock.

• The stock's plunge came after Helus Pharma released results from a mid-stage trial of its anxiety drug HLP004.
• The 36-patient study showed a 10.4-point drop in anxiety scores after six weeks, with 67% of participants responding to treatment.
• Jefferies reiterated a 'Buy' rating and $22 price target, implying a 290% upside from current levels.

Shares of Helus Pharma, Inc. (HELP) crashed to their worst trading day on record on Thursday after the company reported results from a mid-stage anxiety drug trial, though Jefferies sees a larger catalyst ahead that could still drive the stock sharply higher.

HELP shares plunged 34% on Thursday to end at $5.64, marking their lowest levels in nearly a year. However, the stock rose over 3% after-hours. 

Anxiety Trial Results Trigger Sell-Off

Helus Pharma reported early results from a mid-stage clinical trial testing HLP004 as a treatment for adults with moderate-to-severe anxiety who continued to have symptoms despite taking antidepressants.

The study enrolled 36 patients who received two injections of HLP004 three weeks apart while continuing standard medications. Patients given a 20 mg dose saw anxiety scores drop by about 10.4 points after six weeks. At six months, 67% showed a treatment response and 39% achieved remission.

The treatment targets serotonin pathways linked to brain plasticity. In a Phase 1 study using a 30 mg dose, most patients were ready to leave the clinic within about three hours, with the drug’s effects lasting roughly 90 minutes.

Generalized anxiety disorder affects more than 20 million adults in the U.S., and roughly half of patients do not respond to first-line treatments, the company said. 

Jefferies Bullish On HELP Pipeline

While the anxiety study triggered the sell-off, Jefferies maintained a bullish view on the company’s broader pipeline. The brokerage reiterated a ‘Buy’ rating and a $22 price target on the stock following the data release, implying a 290% upside from current levels.

The firm said HLP004 could potentially reduce anxiety symptoms rapidly and durably, and called the generalized anxiety disorder opportunity a $1 billion-plus call option, according to Investing. However, the brokerage said investors are likely waiting for additional data before gaining greater confidence in the program. 

Instead, Jefferies highlighted a larger potential catalyst: the Phase 3 Approach trial evaluating Helus Pharma’s lead drug HLP003 for major depressive disorder. HLP003 is an oral drug to treat depression alongside existing medications. 

Jefferies expects the stock to surge between 100% and 200%, depending on the outcome of the Phase 3 results for HLP003, with results expected in the fourth quarter of 2026.

Depression Trial Pipeline Shows Promise

Last month, results from a mid-stage clinical trial of SPL026 for major depressive disorder were published in the journal Nature Medicine. The randomized study showed a reduction in depressive symptoms within two weeks compared with patients who received a placebo.

Researchers also reported that antidepressant effects began appearing as early as one week after treatment, with benefits lasting up to three months in some participants. The findings helped guide the development of Helus Pharma’s newer drug candidates, including HLP004 for anxiety and HLP003 for depression.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment for HELP was ‘extremely bullish’ amid ‘extremely high’ message volume.

One user said, “Correct this is promising info but way too small of a cohort. Big news will be in the phase 3 trials, which can't come out soon enough.”

Another user said, “This stock will recover, when they knocked at institutionnel doors for cash they answered come in and have a seat.”

HELP stock has declined 31% year-to-date.

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