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Atai Life Sciences (ATAI) has seen a volatile share price run, up 140% YTD, despite a sharp pullback over the past month. The stock trades on an 8.8x price-to-book ratio, well above its peers and the US Pharmaceuticals industry, suggesting an overvalued profile. Investors are assigning a significant premium for pipeline potential rather than current fundamentals. However, setbacks in clinical trials or delays in regulatory approvals could challenge today's valuation narrative.

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