GH Research Surges 24% on FDA Green Light for Depression Drug – What's Next?

Summary
• GH Research (GHRS) rockets 24.08% intraday to $17.52, breaking through 52-week high of $20.50
• FDA lifts clinical hold on GH001, clearing path for global Phase 3 trials in 2026
• Options chain shows 1645 contracts traded for $17.5 strike call expiring 2026-02-20

GH Research’s stock has erupted on news of regulatory progress for its psychedelic-derived depression treatment GH001. With the FDA removing a major roadblock, the stock has surged past $17.50 intraday, trading at its highest level since June 2023. Analysts have long highlighted the stock’s potential, with price targets as high as $39.00, and the recent catalyst has reignited bullish momentum across the biotech sector.

FDA Clears Path for GH001, Igniting Investor Optimism
The 24.08% intraday surge in GHRS is directly tied to the FDA’s decision to lift the clinical hold on GH001, its mebufotenin-based therapy for treatment-resistant depression. This regulatory green light removes a critical barrier for Phase 3 trials, which are now slated to begin in 2026. The news follows months of anticipation, including prior announcements of IND status and positive Phase 2b trial results showing 73% remission rates. With the FDA’s approval, investors are now pricing in the potential for GH001 to become a first-in-class treatment, driving aggressive buying in both equities and options.

Biotech Sector Gains Momentum as GH Research Leads Charge
The broader biotechnology sector has seen mixed performance, but GH Research’s surge has outpaced peers. Amgen (AMGN), the sector leader, rose 3.22% on strong earnings, while other biotechs like Biogen and Novartis reported flat or negative results. GHRS’s 24% move reflects its unique position in the psychedelic drug development space, where regulatory clarity and clinical progress are rare catalysts. The sector’s recent volatility underscores the importance of GH Research’s FDA milestone in differentiating its growth trajectory.

Options and ETFs to Capitalize on GHRS’s Bullish Momentum
• RSI: 65.07 (overbought but not extreme)
• MACD: -0.038 (bullish crossover with signal line at -0.238)
• 200-day MA: $12.87 (well below current price)
• Bollinger Bands: Price at $17.52, above upper band of $14.97

GHRS’s technicals suggest a continuation of its bullish trend, supported by strong options activity. The stock has broken through key resistance levels, with the 52-week high at $20.50 as the next target. For traders, the $17.5 strike call option (GHRS20260116C17.5) offers high leverage (31.96%) and moderate delta (0.546), making it ideal for capitalizing on near-term gains. The $17.5 put option (GHRS20260116P17.5) also shows high implied volatility (110.68%), providing downside protection if the rally stalls. Aggressive bulls may consider the $17.5 call into a breakout above $18.00, while cautious investors might use the put for hedging.

Backtest GH Research Stock Performance
The backtest of GHRS's performance following a 24% intraday increase from 2022 to the present shows mixed results. While the stock experienced a maximum return of 8.91% on January 59, the overall 3-day win rate is 49%, the 10-day win rate is 52.34%, and the 30-day win rate is 52.78%. This indicates that GHRS tends to experience short-term volatility after the intraday surge.

GH Research’s FDA Win: A Catalyst for Sustained Gains
GH Research’s 24% surge is a watershed moment for its psychedelic drug pipeline, with the FDA’s approval of GH001’s Phase 3 plans removing a critical hurdle. Technical indicators and options data suggest the rally has legs, particularly if the stock breaks above $18.00. Investors should monitor the 200-day moving average at $12.87 as a key support level and watch for follow-through volume in the $17.5 strike options. Meanwhile, Amgen’s 3.22% gain highlights the sector’s mixed performance, but GH Research’s unique regulatory progress positions it as a standout. For those seeking exposure, the $17.5 call option offers a high-leverage play on the stock’s continued ascent.