Canaccord Genuity adjusted its price target for Cybin Inc. (NYSE:CYBN) shares, reducing it to $96 from the previous $114. Despite the reduction, the firm maintains a Buy rating for the stock. The revision follows Cybin's recent corporate update, which included new timelines for its clinical trials and the completion of a significant reverse stock split.
Cybin announced that it anticipates 12-month durability and efficacy data from its ongoing Phase 2 study of CYB003, a deuterated psilocybin analog for major depressive disorder (MDD), to be available in early the fourth quarter of 2024, rather than the previously stated timeline of the fourth quarter of 2024. The company is also preparing to commence its Phase 3 program for CYB003 in MDD imminently. Additionally, Cybin expects to report data from its Phase 2 trial for CYB004, a deuterated DMT, in late 2024 or early the first quarter of 2025.
Cybin also completed a 38:1 reverse stock split, prompting Canaccord Genuity to update its model and price target for the company. This financial restructuring is aimed at consolidating shares and potentially improving the stock's marketability.
The company further bolstered its clinical leadership by announcing Dr. Atul Mahableshwarkar and Dr. Tom Mack as program leads for CYB003 and CYB004, respectively. Both bring significant experience to their roles, which Canaccord views as a positive development for Cybin's clinical programs.
Canaccord's commentary on the stock remains positive, citing an anticipation for the forthcoming 12-month Phase 2 data. The firm also notes that at the current stock levels, the potential for CYBN to address generalized anxiety disorder (GAD) is not yet fully reflected in the stock's price.
Cybin Inc. has reported significant developments in its operations. The neuropsychiatry company has recently consolidated its common shares, reducing the number from 759,692,495 to approximately 19,991,907. This action aims to streamline the company's share structure without altering each shareholder's percentage ownership or voting power. The terms for the company's outstanding common share purchase warrants and options have also been adjusted in line with the consolidation.
Simultaneously, Cybin Inc. is preparing to launch a Phase 3 trial for its drug candidate CYB003, targeting Major Depressive Disorder (MDD). The trial, expected to commence in late summer 2024, will be conducted across 30 clinical sites in the United States and Europe. The company has also initiated a Phase 2 study for CYB004, a program for generalized anxiety disorder.
Additional updates include a realignment of Cybin's Governance and Nominating Committee and Compensation Committee, which are now composed entirely of independent Directors. The company also recently appointed Dr. Atul R. Mahableshwarkar as Senior Vice President of Clinical Development, who will lead the CYB003 program.
InvestingPro Insights
In light of Canaccord Genuity's recent price target adjustment for Cybin Inc. (NYSE:CYBN), current real-time data from InvestingPro provides further context for investors considering the stock. Cybin's market capitalization stands at $186.84 million, reflecting the company's size and market value. Despite significant returns over the past week, with a 20.79% price total return, the company's long-term profitability remains uncertain. Analysts do not anticipate Cybin will be profitable this year, and the company has not been profitable over the last twelve months, with a negative adjusted P/E ratio of -3.23.
Two InvestingPro Tips that may be particularly relevant for investors are that Cybin holds more cash than debt on its balance sheet, which could provide some financial stability, and that the company's liquid assets exceed its short-term obligations, suggesting a healthy liquidity position. However, it's also important to note that Cybin is quickly burning through cash and suffers from weak gross profit margins, which could impact future financial health.
For those interested in a deeper dive, InvestingPro offers additional tips on Cybin Inc., providing a comprehensive analysis of the company's financial health and market potential. To explore these insights, investors can visit https://www.investing.com/pro/CYBN.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.