SAN DIEGO - Skye Bioscience, Inc. (NASDAQ: SKYE), a biotech firm working on endocannabinoid system-based therapeutics, has been added to the Russell 2000® and Russell 3000® indexes as of today. This inclusion comes as a part of the annual reconstitution of Russell stock indexes, which is determined by market capitalization and style attributes.
Kaitlyn Arsenault, CFO of Skye Bioscience, expressed that the inclusion in the Russell indexes is a reflection of the company's achievements and will likely increase its visibility among investors. Skye Bioscience anticipates the launch of a Phase 2 clinical trial for its drug Nimacimab in the third quarter of 2024.
The Russell 2000® Index is a benchmark for small-cap stocks in the United States, while the broader Russell 3000® Index represents the largest 4,000 U.S. stocks as of April 30th, ranked by total market capitalization. Inclusion in the Russell 3000® guarantees a spot in either the large-cap Russell 1000® or the small-cap Russell 2000® Index.
FTSE Russell, a global index provider, oversees the Russell indexes and is recognized for its benchmarking, analytics, and data solutions. The indexes are instrumental for investment managers and institutional investors, with about $10.5 trillion in assets benchmarked against them as of December 2023.
Skye Bioscience focuses on novel treatments for diseases with metabolic, inflammatory, and fibrotic processes. Nimacimab, their leading drug candidate, is a humanized monoclonal antibody aimed at treating conditions such as obesity, chronic kidney disease, and metabolic dysfunction-associated steatohepatitis (MASH).
The company's strategy is to leverage biological targets with proven human mechanisms of action to develop first-in-class therapeutics. The information regarding Skye Bioscience's inclusion in the Russell indexes and its upcoming clinical trials is based on a press release statement.
In other recent news, Skye Bioscience Inc. experienced a revision in its stock outlook by Oppenheimer, with the price target being lowered to $21 from the previous $25. This followed the company's announcement that its Phase 2a trial for an ophthalmic emulsion aimed at treating glaucoma did not achieve its main goal, leading to the cessation of this treatment's development. In response, Skye shifted its focus towards the advancement of nimacimab, an investigational treatment for obesity, a decision that Oppenheimer supported.
Simultaneously, Cantor Fitzgerald initiated an Overweight rating on Skye Bioscience, setting a price target of $21.00 and highlighting the company's promising pipeline. Piper Sandler also raised its price target on the company to $20, following progress in Skye Bioscience's Phase IIa study.
Furthermore, the company secured $40 million in gross proceeds through a private placement deal. The funds will support the company's upcoming Phase 2 clinical trials for obesity and glaucoma. These are the recent developments surrounding Skye Bioscience Inc.
InvestingPro Insights
As Skye Bioscience, Inc. (NASDAQ: SKYE) secures its place in the Russell 2000® and Russell 3000® indexes, investors may be seeking deeper financial insights into the company's performance. According to InvestingPro data, Skye Bioscience holds a Price/Earnings (P/E) Ratio of -16.87 and a Price/Book (P/B) Ratio of 4.32 as of the last twelve months ending Q1 2024. These metrics suggest that the market has factored in the company's current lack of profitability, with its stock trading at a premium relative to its book value.
Despite the challenges, Skye Bioscience has demonstrated significant price volatility, with a 6 Month Price Total Return of an impressive 194.49%, highlighting a large price uptick during this period. However, it's worth noting that the company has experienced a 1 Month Price Total Return of -31.01%, indicating recent market adjustments. These fluctuations could be of interest to investors looking for short-term trading opportunities or those trying to gauge the stock's momentum.
InvestingPro Tips reveal that Skye Bioscience holds more cash than debt on its balance sheet and has liquid assets exceeding short-term obligations, which may provide some financial stability for the company. Nevertheless, analysts do not anticipate the company will turn profitable this year, and the stock has fared poorly over the last month, which could be a point of concern for potential investors. It's important to consider these aspects when evaluating the company's inclusion in the Russell indexes and its future prospects.
For investors seeking more comprehensive analysis, there are additional InvestingPro Tips available at https://www.investing.com/pro/SKYE. These can offer further guidance on the company's financial health and stock performance. Remember to use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, providing access to exclusive insights that can empower your investment decisions.
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