SAN DIEGO - Skye Bioscience, Inc. (NASDAQ:SKYE), a clinical-stage biopharmaceutical company, has announced key changes to its Board of Directors and the upcoming launch of a Phase 2 clinical trial for its drug candidate Nimacimab. The company appointed Karen Smith, MD, Ph.D., MBA, LLM, to its board, bringing extensive global biotech and biopharma leadership experience.
This strategic move comes as board members Keith Ward, Ph.D., and Praveen Tyle, Ph.D., are set to resign effective August 1, 2024.
Dr. Smith's career spans over two decades and includes leadership roles in companies such as Allergan (NYSE:AGN), AstraZeneca (NASDAQ:AZN), and Bristol-Myers Squibb (NYSE:BMY). She has also served on the boards of several companies that were later acquired, showcasing her experience in company growth and development. Her expertise is expected to be particularly valuable as Skye Bioscience prepares to initiate a Phase 2 clinical trial in obesity with Nimacimab in the third quarter of 2024.
Nimacimab is a humanized monoclonal antibody designed to modulate CB1 signaling, with potential benefits for patients with obesity and related metabolic conditions. The upcoming trial will evaluate the efficacy of Nimacimab both as a monotherapy and in combination with a GLP-1R agonist.
In addition to the board appointment, Skye Bioscience has granted Brennen Brodersen, the newly appointed General Counsel, a stock option to purchase 60,000 shares and 15,000 restricted stock units under the company's 2024 Inducement Equity Incentive Plan. These equity awards are set to vest starting June 17, 2025, and are part of the inducement for Mr. Brodersen's employment with the company, by Nasdaq Listing Rule 5635(c)(4).
The company's focus remains on leveraging the endocannabinoid system to develop novel therapeutics for diseases with significant unmet medical needs. As it advances its strategic goals, Skye Bioscience aims to differentiate itself clinically and commercially with its first-in-class therapeutics.
The information reported is based on a press release statement from Skye Bioscience, Inc.
In other recent news, Skye Bioscience, a biotech firm, has been included in the Russell 2000® and Russell 3000® indexes, reflecting the company's achievements and enhancing its visibility among investors. The company is planning to launch a Phase 2 clinical trial for its drug Nimacimab in the third quarter of 2024.
Meanwhile, the company's stock outlook was revised by Oppenheimer, with the price target being lowered to $21 from $25 following an unsuccessful Phase 2a trial for a glaucoma treatment.
In response to the trial's outcome, Skye Bioscience has shifted its focus towards the advancement of Nimacimab, a decision that Oppenheimer supported. Other analyst firms like Cantor Fitzgerald and Piper Sandler also showed confidence in Skye Bioscience, initiating an Overweight rating and raising the price target respectively.
Furthermore, Skye Bioscience secured $40 million in gross proceeds through a private placement deal to support the company's upcoming Phase 2 clinical trials.
These are among the recent developments surrounding Skye Bioscience.
InvestingPro Insights
As Skye Bioscience, Inc. (NASDAQ:SKYE) embarks on its Phase 2 clinical trial and reshapes its Board of Directors, investors are closely monitoring the company's financial health and stock performance. According to InvestingPro, Skye holds more cash than debt on its balance sheet, which may provide a cushion as it funds ongoing clinical developments. However, the company's gross profit margins are weak, signaling potential challenges in scaling operations profitably.
InvestingPro Data metrics reveal a Price/Earnings (P/E) Ratio of -16.87, reflecting investor skepticism about future earnings, and a Price/Book (P/B) Ratio of 4.32, indicating that the stock may be overvalued compared to the company's net asset value. Furthermore, the stock has experienced significant volatility, with a 1 Month Price Total Return of -36.79% and a 6 Month Price Total Return of 196.47%, underscoring the stock's erratic movements and the high-risk nature of biotech investing.
InvestingPro Tips highlight that Skye's stock price has fared poorly over the last month and that analysts do not expect the company to be profitable this year. Additionally, the fact that Skye does not pay a dividend may influence the decision-making of income-focused investors.
For those interested in a deeper dive into Skye Bioscience's financials and stock performance, InvestingPro offers additional tips, which can be accessed at https://www.investing.com/pro/SKYE. To enhance your investing strategy, use coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, which includes access to exclusive insights and analytics. There are 9 additional InvestingPro Tips available to help investors make more informed decisions.
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