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FSD Pharma: A Compelling Value Proposition As UNBUZZD™ Positions To Dominate The Alcohol-Detox Functional Beverage Market

FSD Pharma: A Compelling Value Proposition As UNBUZZD™ Positions To Dominate The Alcohol-Detox Functional Beverage Market

FSD Pharma (NASDAQ: HUGE) (CSE: HUGE) stock is in play—and for excellent reasons. The main is that they are on an accelerated pathway to tap into at least two markets that can generate massive shareholder value. As important, delivering on that intent is a near-term expectation, meaning that its current $0.75 share price and $29.73 million market cap may expose a valuation disconnect between assets, potential, and share price worth seizing. 

Investors appear to be doing just that. Last week, trading volume reached its highest level since August 2023. Since then, the volume has stayed elevated, higher than the roughly 206k average skewed higher after scoring that 1.9 million shares-traded-day in March. That interest has been moving HUGE stock higher and lower intraday, sometimes by over 4%. What's important about that is that strong hands are gaining control of the stock, evidenced by a base that's formed that is higher than its current price. 

Thus, as investors' hands tighten around an already small float, of which insiders and institutions own about 20%, the investment proposition at these levels may not last much longer. In fact, better positioned today than when it scored its 52-week high of $2.10, the path of least resistance for HUGE stock may very well be higher. Based on recent updates, appreciably so.

Loaded With Value Drivers

That's not an overly bullish presumption, either. The company has significant value drivers, including its clinical-stage program, LUCID-MS, to treat Multiple Sclerosis and interest in a game-changing "rapid alcohol detoxification" product, UNBUZZD™. Both present compelling opportunities. While investors should familiarize themselves with both, the latter may be the near-term value driver that can provide investors the biggest near-term bang for the buck. 

That assessment is more than warranted; it's justified. After all, UNBUZZD™ is a revolutionary product that could earn the spoils from a first-mover advantage. But product excellence is just one factor. As importantly, it's being managed and marketed by a Who's Who list of beverage industry veterans, including brand marketing partner Celly Nu CEO John Duffy, a seasoned industry executive with over thirty successful years of experience in sales leadership, revenue growth, strategy optimization, administration, customer development, and operations. Most recently, John was Co-Founder, EVP, and Chief Commercial Officer at Legends Access LLC with partner and NFL Hall of Fame member Ray Lewis, where he created and managed Legends influencer, social media, and e-commerce platforms and developed partnerships with new clients, including MillerCoors (NYSE: TAP), UPS (NYSE: UPS), and Capital One (NYSE: Capital One Financial: COF). Before that, he held leadership positions with LA Libations (a next-generation beverage incubator), JJ Taylor Distributing, and 22 years at Coca-Cola (NYSE: KO), including Vice President of Marketing Assets and Vice President of National Sales. In short, he's an industry superstar.

He's got plenty of top-notch support, too. He's flanked by marketing and operation leadership that's equally impressive, including Halley Lorber and Peter Slauer, both bringing to the mission decades of experience working with brand powerhouses like Frito Lay (NYSE: PEP) and Keurig, helping them generate billions in value through brand development and acquisitions. Investors would be wise to factor into an appraisal of HUGE stock, the value they not only provide but will likely generate. More significantly, they should understand, perhaps better said, appreciate why they joined Celly Nu. That answer is becoming more apparent by the day: UNBUZZD™ is showing itself as the best choice in an emerging beverage segment market where the spoils of leadership can be worth billions.

Side By Side, UNBUZZD™ Checks More Boxes

Side-by-side comparisons expose differences that are advantages. Moreover, the checked boxes show why investors may be wise to back UNBUZZD™ and the team behind it in the race to earn the lion's share of a massive and still-growing market opportunity. Plenty supports that decision, including that UNBUZZD™ checks a considerable number of boxes others can't, which is spearheading a go-to-market strategy that should make the product available nationwide this year.

Distribution agreements made and those in the works can expedite HUGE earning product placements in the hospitality and eCommerce sectors, including on Amazon (NASDAQ: AMZN) and in national retailers like Walmart (NYSE: WMT), CVS (NYSE: CVS) and Target (NYSE: TGT). Earning those placements is an expectation, not a wish. According to HUGE, they'll earn them through engaging the consumer demand from socially conscious adults who want to drink responsibly and wake up feeling refreshed. Partnerships with BevSource, Six+One, and More Molecule LLC can expedite that intention.

If successful, HUGE will tap into a global hangover cure products market that Grand View Research valued at $2.05 billion in 2022. However, while a significant and virtually untapped opportunity then, it's gotten more substantial. Growing at a compound annual growth rate of 14.8% to the end of this decade, the revenue-generating opportunity becomes a far more significant $6.2 billion. And know this- reaching just the US-based customer delivers a prize worth targeting. Grand View Research pegs the U.S. hangover cure products market size at $393.2 million in 2022, expecting it to surge to $1.15 billion by 2030.

Still, that lofty forecast may prove conservative, noting that U.S. consumer demand for "functional beverages" is soaring, as evidenced by the $141 billion functional beverage segment and $53 billion dietary supplements market. Factoring those markets into the equation, the revenue-generating opportunities in play for UNBUZZD™ can be far higher than its primary target market, the "hangover cure products market", suggests. Said more directly, by selling into multiple verticals, the sales growth trajectory for UNBUZZD™ could steepen to a nearly straight line higher. That's speculative but not overly so. 

Especially following news last week that the company submitted its Clinical Trial Application (CTA) for a planned Phase-1b clinical trial to Assess the Safety and Efficacy of unbuzzd™ in Healthy Volunteers in an Induced State of Alcohol Intoxication (METAL-1 TRIAL). That milestone marks the culmination of months of intense work by the FSD team and its expert advisors, conceptualizing and designing this clinical trial to assess the safety and efficacy of this innovative product on people who drink alcohol. That work could also support UNBUZZD™ earning a larger share of the revenue pie, influenced by an unrivaled data set to separate itself in an already thin competitive landscape.

Forecasting For Significant Growth 

The team behind UNBUZZD™ is not short on optimism. They forecast 2024 revenues to reach about $1.6 million. It steepens from there, with the team expecting YoY revenues to grow 287% in 2025, 176% in 2026, and 141% in 2027, culminating in forecast sales of over $41 million by the end of that period. As critical to the topline growth, the bottom line is expected to produce operating profit in 2026, followed by a 2027 forecast to drop roughly $13 million to the bottom line as scale efficiencies take root.

There are reasons for the company and its investors to be bullish about the opportunity. Foremost is that UNBUZZD™ statements to the FDA have not been objected to. That's a big deal because they say quite a lot and make an excellent case for why it is a better segment product. Statements include: 

  • "Product restores mental alertness"
  • "Product promotes mental health"
  • "Product promotes alcohol metabolism by the body's natural dehydrogenase liver enzymes"
  • "Product accelerates the metabolism of alcohol by ADH and ALDH"
  • "Product replenishes cofactors necessary for alcohol metabolism by the liver enzymes"
  • "Product replenishes cofactors necessary for alcohol metabolism"
  • "Product enhances mental alertness and replenishes cofactors for alcohol metabolism"
  • "Product enhances mental alertness and accelerates the rate of alcohol metabolism"
  • "Product supports faster recovery from alcohol inebriation"

Remember, the FDA is not forgiving regarding inaccurate and deceptive marketing. Thus, an appraisal of UNBUZZD™ must include the accurate value of comparative advantages, which, in this case, are differences that can position it as an undisputed market leader. Yes, there's competition. However, looking at the brand comparable graphic above, UNBUZZD™ may be the best product to exploit the market opportunity from a best-in-class distinction.

Checking that box could lead to a tsunami of interest in HUGE stock. And with only about 39 million shares outstanding and significant insider ownership reducing the trading float to roughly 33 million, it won't take much to move the valuation needle higher. Even incremental updates on the clinical trial and distribution deals front may be plenty to support and, as importantly, sustain an increase in HUGE's share price. 

 

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