Stock Analysis & Valuation Pasithea Therapeutics Corp. (KTTA)

• Previous Close: $0.86
• Sector Valuation Confidence Level: High

Valuation method	Value, $	Upside, %
Artificial intelligence (AI)	n/a	n/a
Intrinsic value (DCF)		n/a
Graham-Dodd Method		n/a
Graham Formula		n/a

Strategic Investment Analysis

Company Overview

Pasithea Therapeutics Corp. (NASDAQ: KTTA) is an innovative biotechnology company focused on pioneering treatments for psychiatric and neurological disorders. Headquartered in Miami Beach, Florida, Pasithea combines cutting-edge research with clinical applications, including plans to operate specialized anti-depression clinics utilizing ketamine infusion therapy. Founded in 2020, the company targets unmet needs in mental health care, leveraging trained pharmacists to administer intravenous ketamine—a promising but underutilized treatment for depression and related conditions. Operating in the high-growth biotechnology sector, Pasithea aims to bridge the gap between clinical research and patient care, positioning itself as a disruptor in mental health therapeutics. With no current revenue but a strong research-driven approach, the company appeals to investors seeking exposure to novel psychiatric treatments and ketamine-based therapies.

Investment Summary

Pasithea Therapeutics presents a high-risk, high-reward opportunity for investors focused on early-stage biotech innovation. The company’s focus on ketamine-based therapies for depression taps into a growing mental health market, but its pre-revenue status and significant net losses (-$13.9B net income in latest filings) underscore substantial financial risk. With no debt and $6.9M in cash, liquidity is limited, and further dilution or fundraising may be necessary. The stock’s low beta (0.539) suggests relative insulation from market volatility, but clinical and regulatory hurdles remain. Investors should weigh the potential of its clinic rollout and pipeline against its cash burn and unproven commercial model.

Competitive Analysis

Pasithea Therapeutics operates in the competitive psychedelics and neuropsychiatry biotech space, where it differentiates through a dual focus on drug development and clinical service delivery. Its planned ketamine clinics provide a near-term revenue pathway distinct from pure-play biotech peers, though scalability is unproven. The company’s asset-light model (no capex reported) contrasts with larger peers investing in manufacturing, but reliance on third-party providers could limit margin control. Competitively, Pasithea lacks the pipeline depth of established CNS-focused biotechs, instead banking on ketamine’s off-label potential and rapid clinic deployment. Its micro-cap status ($6.8M market cap) limits R&D firepower versus rivals, but niche specialization in treatment-resistant depression could carve defensible positioning if clinical outcomes differentiate. Key risks include reimbursement challenges for infusion therapies and competition from oral ketamine analogs in development.

Major Competitors

• COMPASS Pathways (CMPS): COMPASS leads in psychedelic drug development with its synthetic psilocybin (COMP360) for depression. Stronger financial backing and late-stage trials give it an edge over Pasithea, but lacks Pasithea’s clinic-based service model. High cash burn and regulatory risks are shared challenges.
• ATAI Life Sciences (ATAI): ATAI’s diversified psychedelics pipeline (including ketamine analogs) and deeper funding overshadow Pasithea’s efforts. However, ATAI’s platform approach lacks Pasithea’s direct-to-patient clinic strategy. Both face long paths to commercialization.
• Johnson & Johnson (JNJ): JNJ’s Spravato (esketamine) dominates FDA-approved ketamine-derived depression treatment, with vast commercialization resources Pasithea cannot match. However, Pasithea’s IV ketamine may compete on cost and accessibility in clinic settings.
• Mind Medicine (MindMed) (MNMD): MindMed’s focus on LSD and digital therapeutics diverges from Pasithea’s ketamine emphasis, but both target mental health niches. MindMed’s broader pipeline offsets Pasithea’s clinic potential, though neither has near-term revenue.