Cingulate stock surges 115% after European patent approval for ADHD treatment: Is it a buy?

Cingulate Inc (NASDAQ: CING), a biopharmaceutical company that focuses primarily on innovative treatments for Attention Deficit Hyperactivity Disorder (ADHD) is having an extraordinary day.

Shares of the $10 million company based out of Kansas opened a whopping 115% up on Friday as investors cheered a European patent it secured for CTx-1301 – its lead asset for the treatment of ADHD.

The stock is rallying sharply as the aforementioned patent is a significant milestone in the company’s global expansion strategy. Cingulate stock is now on track to close this week with a total of more than 400% gain.

Why is European patent significant for CING?

The newly received patent is a game-changer for Cingulate as it expands its intellectual property portfolio beyond the United States to include up to 30 European territories, including the United Kingdom.

The development helps CING expand its footprint in these markets and emerge as a serious contender in the global ADHD space.

Cingulate share price is soaring this morning because the neurodevelopmental disorder affects millions worldwide. The patent is timely considering the growing recognition of ADHD as a significant health concern across Europe and the increasing demand for more effective treatment options.

The news arrives only days after the biopharmaceutical company said it had $0.4 million in cash and cash equivalents, sufficient to fund operations through the third quarter of 2024.

Cingulate could disrupt the ADHD market

Cingulate is now committed to filing an NDA (new drug applications) with the US Food & Drug Administration. Shane J. Schaffer – its chief executive said in a press release on Friday:

We look forward to obtaining additional patents in the near-term as we continue to showcase the clinical success of CTx-1301.

The dual-pronged approach of CING, where it’s seeking approval in the US while securing patent in Europe, demonstrates the biopharmaceutical company’s ambitious and well-coordinated global strategy.

CTx-1301 could potentially improve patient adherence and quality of life as it’s a once-daily dose versus the other current ADHD treatments that require multiple doses per day, which may lead to inconsistent symptom management and compliance issues, especially in children and adolescents.

The dramatic stock price increase reflects investor optimism about Cingulate’s potential to disrupt the ADHD treatment market. With the global ADHD therapeutics market projected to reach $24.9 billion by 2025 (according to Grand View Research), Cingulate’s expanded patent protection and innovative product position it to capture a significant share of this growing market.