Executive Summary / Key Takeaways

• Differentiated Pipeline: MIRA Pharmaceuticals is a clinical-stage company advancing a pipeline of novel therapeutics, including Ketamir-2 and MIRA-55, which have received a crucial DEA classification as non-controlled substances. This significantly de-risks their commercialization pathway and offers a distinct competitive advantage in addressing neuropathic pain, anxiety, and cognitive decline.
• Strategic Expansion into Metabolic Disorders: The pending acquisition of SKNY Pharmaceuticals, Inc., expected to close in Q3 2025, is a transformative move. It introduces SKNY-1, a promising candidate for weight loss and smoking cessation, and includes a critical $5 million capital infusion, expanding MIRA's therapeutic reach into large, high-demand markets.
• Clinical Momentum: Ketamir-2 has successfully completed the Single Ascending Dose portion of its Phase 1 trial with no safety concerns, and its Investigational New Drug (IND) application has been cleared by the FDA for U.S. clinical trials. A Phase IIa trial for neuropathic pain is anticipated by Q4 2025, signaling rapid progression.
• Significant Financial Headwinds: Despite clinical progress, MIRA faces substantial liquidity challenges, operating at a net loss and with insufficient cash to fund operations for the next 12 months, raising "substantial doubt about the Company's ability to continue as a going concern." Nasdaq non-compliance on stockholders' equity further underscores this pressure.
• High-Stakes Funding Strategy: The company's immediate future hinges on successful capital raises through its At The Market (ATM) equity program and the timely completion of the SKNY acquisition, which together are crucial for addressing liquidity needs and maintaining Nasdaq listing compliance.

A New Paradigm in Neuroscience and Metabolic Health

MIRA Pharmaceuticals, Inc., established in September 2020, is a clinical-stage pharmaceutical development company based in Miami, Florida. The company's core strategy revolves around advancing novel oral therapeutics designed to address significant unmet medical needs across a broad spectrum of neurologic, neuropsychiatric, and, increasingly, metabolic disorders. MIRA's foundational strength lies in its innovative approach to drug development, particularly its focus on creating differentiated compounds that offer improved safety profiles and therapeutic advantages.

A cornerstone of MIRA's competitive positioning is the unique regulatory status of its lead drug candidates. Both Ketamir-2, a novel oral ketamine analog, and MIRA-55, an oral pharmaceutical marijuana molecule, have undergone scientific review by the U.S. Drug Enforcement Administration (DEA), which concluded that neither would be considered a controlled substance or listed chemical under the Controlled Substances Act. This classification is a profound differentiator, significantly de-risking the development and commercialization pathways for these assets by circumventing the stringent regulatory hurdles and societal stigmas often associated with controlled substances. For investors, this translates into potentially faster market access, broader patient adoption, and a more favorable pricing environment compared to alternatives.

MIRA's technological differentiation is evident across its pipeline. Ketamir-2, currently in Phase 1 clinical trials for neuropathic pain, has demonstrated superior efficacy in preclinical neuropathic pain models compared to traditional ketamine, gabapentin, or pregabalin, as detailed in a peer-reviewed publication in Frontiers in Pharmacology. Crucially, an FDA-required neurotoxicity study showed "no evidence of brain lesions or adverse CNS effects" for Ketamir-2, a key distinction from traditional ketamine, which has been linked to NMDA-linked neurotoxicity and Olney lesions in similar preclinical models. This enhanced safety profile could provide a significant competitive edge, allowing for wider applicability and potentially higher patient compliance. Furthermore, MIRA is developing a topical formulation of Ketamir-2, which in preclinical studies demonstrated "rapid onset, durable effect, and efficacy comparable to injected morphine" in both acute and inflammatory pain models. This topical variant targets an "$11B+ U.S. Topical Pain Relief Market," offering a non-opioid, localized treatment option.

MIRA-55, the company's proprietary non-psychotropic marijuana analog, is engineered to selectively activate CB2 cannabinoid receptors, which are associated with anti-inflammatory and analgesic effects. Preclinical data revealed that MIRA-55 delivered "morphine-comparable pain relief in a validated animal model of inflammatory pain, without inducing local inflammation." This non-psychoactive nature, combined with potent pain relief, positions MIRA-55 as a compelling non-opioid alternative for inflammatory pain and for alleviating anxiety and cognitive decline associated with early-stage dementia.

The company's strategic vision expanded significantly with the binding letter of intent to acquire SKNY Pharmaceuticals, Inc., announced on March 19, 2025. This acquisition introduces SKNY-1, a novel oral drug candidate targeting weight loss and smoking cessation—two of the leading causes of preventable death. Preclinical results for SKNY-1 are highly promising, showing "up to 30% weight loss, suppression of appetite and craving for high-calorie diets, and reversal of nicotine-seeking behavior—all achieved within six days of oral treatment" in a zebrafish model. Importantly, SKNY-1 demonstrated "clear reversal of anxiety-related behavior induced by a CB1 activator," distinguishing it from earlier CB1-targeting drugs that were discontinued due to serious central nervous system (CNS) side effects. This strategic move not only broadens MIRA's therapeutic footprint but also diversifies its pipeline into high-growth metabolic markets with a de-risked technological approach.

Competitive Landscape: Carving a Niche Against Giants

MIRA operates within the intensely competitive biopharmaceutical sector, vying for market share and investor attention against established giants and innovative smaller players. Its direct competitors include large pharmaceutical companies with extensive neurological portfolios like Jazz Pharmaceuticals (JAZZ), AbbVie (ABBV), and Pfizer (PFE), as well as cannabinoid-focused entities such as Canopy Growth Corporation (CGC).

Compared to Jazz Pharmaceuticals, which boasts strong revenue growth and consistent profitability from its established cannabinoid-derived products, MIRA's synthetic approach to cannabinoid therapies offers a potentially more targeted and consistent dosing profile, with a focus on superior safety. While Jazz benefits from a well-established commercial scale and regulatory track record, MIRA aims to differentiate through innovation speed and the de-risked regulatory status of its non-controlled substance candidates. Similarly, against Canopy Growth, a leader in plant-based cannabinoid therapeutics, MIRA's synthetic analogs may provide more predictable efficacy and fewer side effects, potentially offering a performance edge in cognitive decline treatments. However, Canopy's broader distribution networks and existing revenue streams currently outpace MIRA's early-stage commercial capabilities.

Against pharmaceutical behemoths like AbbVie and Pfizer, MIRA's niche focus on specific receptor interactions for anxiety and pain could offer superior efficacy in targeted applications compared to their broader neurological portfolios. AbbVie, with its substantial revenue from blockbuster drugs and high profitability, and Pfizer, with its vast resources and global footprint, possess significantly greater financial and operational scale. MIRA's challenge lies in converting its innovative therapeutic potential into commercial success against these well-resourced competitors, who can outspend on R&D and marketing. MIRA's competitive advantages stem from its proprietary synthetic technology and a focused R&D strategy that aims to deliver superior safety and targeted efficacy, potentially leading to stronger customer loyalty and improved margins in specialized treatment areas. These moats help MIRA differentiate from competitors whose products may have broader applications but lack the specific advantages of MIRA's non-controlled substance status or targeted safety profiles.

However, MIRA's smaller scale and early-stage status present significant vulnerabilities. Its limited resources can result in higher operational costs and lower margins compared to its larger rivals, making it challenging to compete effectively in shared markets. The company's R&D efforts, while innovative, are also subject to dependencies and slower development cycles, which could delay market entry and impact market share against competitors with rapid commercialization capabilities. Broad industry trends, such as increasing energy demands from AI and data centers, could indirectly impact MIRA's operational costs, potentially affecting its profitability more acutely than larger, more diversified competitors with efficient infrastructures.

Strategic Expansion and Operational Momentum

MIRA's strategic initiatives are centered on advancing its promising pipeline through clinical development and expanding its therapeutic reach. The company has demonstrated significant operational momentum in the first half of 2025.

A pivotal development is the planned acquisition of SKNY Pharmaceuticals, Inc. On March 19, 2025, MIRA entered into a binding letter of intent to acquire SKNY, a move that is expected to expand MIRA's development pipeline into the high-demand areas of weight loss and smoking cessation. The merger is contingent on an independent valuation confirming SKNY's value is at least equal to MIRA's, and it includes a crucial $5 million capital infusion from SKNY, bolstering MIRA's balance sheet. The Board of Directors approved this acquisition on May 8, 2025, reflecting a combined enterprise value of over $60 million based on independent review, with a shareholder vote scheduled for September 11, 2025. This acquisition is not merely about pipeline expansion; it is a strategic financial maneuver to inject much-needed capital and address MIRA's liquidity concerns.

In its core neuroscience programs, MIRA has made substantial progress with Ketamir-2. The Phase 1 clinical trial for oral Ketamir-2 in neuropathic pain is well underway, with the Single Ascending Dose (SAD) portion successfully completed by August 19, 2025, reporting no safety concerns. The company is now preparing to initiate the Multiple Ascending Dose stage. A major regulatory milestone was achieved on July 28, 2025, when the U.S. Food and Drug Administration (FDA) cleared MIRA's Investigational New Drug (IND) application for Ketamir-2, enabling U.S.-based clinical trials for neuropathic pain. This clearance, coupled with positive preclinical data in a diabetic neuropathy animal model where "some subjects achieving complete symptom reversal," reinforces confidence in Ketamir-2's potential. MIRA anticipates beginning a Phase IIa clinical trial in neuropathic pain by the end of 2025, a critical step towards commercialization.

Financial Realities: A Tightrope Walk to Commercialization

As a clinical-stage pharmaceutical company, MIRA Pharmaceuticals currently generates no revenue from its operations. This is reflected in its financial statements, with zero revenues reported for both the three and six months ended June 30, 2025, and 2024. The company's financial performance is characterized by sustained losses, a common trait for firms in this development stage. For the three months ended June 30, 2025, MIRA reported a net loss of $(1.54) million, an improvement from the $(1.69) million loss in the prior-year period. However, for the six months ended June 30, 2025, the net loss was $(3.32) million, compared to $(3.41) million in the same period of 2024.

Operating costs reflect the company's focus on R&D and administrative functions. Research and development expenses decreased to $810,601 for the six months ended June 30, 2025, down from $1.38 million in the prior year, primarily due to decreased costs associated with MIRA-55.00 development. Conversely, general and administrative expenses increased to $2.54 million for the six months ended June 30, 2025, from $2.12 million in 2024, largely driven by an increase in stock-based compensation. Interest income also saw a decline, primarily due to lower cash balances.

Operating activities consumed $2.43 million in cash during the first six months of 2025, driven by the net loss and payments for accounts payable and prepaid expenses, partially offset by $1.40 million in stock-based compensation.

These figures, combined with stockholders' equity of approximately $0.60 million at June 30, 2025, have led management to conclude that there is "substantial doubt about the Company's ability to continue as a going concern for a period of twelve months from the issuance date of this report."

Further compounding these financial pressures, MIRA received a Nasdaq notification on April 8, 2025, indicating non-compliance with the minimum $2.50 million stockholders' equity requirement. While Nasdaq accepted MIRA's plan to regain compliance, granting an extension until October 6, 2025, the company's ability to meet this deadline is paramount. MIRA's strategy to address these challenges includes leveraging its At The Market (ATM) equity offering facility. In July 2025 alone, the company sold 1.54 million shares for approximately $2.0 million in gross proceeds and an additional 17,373 shares for approximately $0.2 million in net proceeds. The anticipated $5 million capital infusion from the SKNY acquisition is also a critical component of its funding strategy and Nasdaq compliance plan. The company explicitly states the need for "significant additional external funding" to support ongoing operations and advance its clinical pipeline. The failure to secure this capital could necessitate a curtailment of operations, materially impacting its business objectives.

Conclusion

MIRA Pharmaceuticals presents a compelling, albeit high-risk, investment thesis built upon an innovative pipeline of non-controlled substance drug candidates targeting significant medical needs in neuropathic pain, anxiety, and metabolic disorders. The company's technological differentiators, particularly the DEA's favorable classification of Ketamir-2 and MIRA-55, and the de-risked profile of SKNY-1, represent a substantial competitive moat that could accelerate market entry and adoption. Recent clinical advancements for Ketamir-2, including FDA IND clearance and the anticipated Phase IIa trial, underscore the operational momentum.

However, the path to commercialization is fraught with significant financial challenges. MIRA's current cash position and ongoing losses raise substantial doubt about its ability to continue as a going concern, a reality exacerbated by Nasdaq listing compliance issues. The successful execution of its funding strategy, including continued utilization of the ATM facility and the timely completion of the SKNY acquisition with its crucial capital infusion, is paramount. Investors must weigh the substantial clinical and financial risks inherent in a clinical-stage biopharmaceutical company against the potential for significant returns if MIRA can successfully advance its differentiated pipeline through later-stage trials and secure the necessary capital to bring these promising therapies to market. The company's ability to convert its technological leadership into sustainable financial performance will define its long-term success.