- April analyst reports all point to a bright future for Cybin
- “CYBN is a true multi-molecule company that’s not being reflected in its valuation,” reports Stifel
- “With a relatively small 5% penetration, Cybin could achieve ~$8B in sales in the U.S. and EU5 combined,” notes Roth
A series of recent analyst reports bodes well for Cybin (NEO: CYBN) (OTCQB: CLXPF), a leading biotech company focused on progressing psychedelic therapeutics. April reports from Canaccord Genuity equity research company, Stifel GMP (https://ibn.fm/aQ9af) and Roth Capital Partners (https://ibn.fm/YkBNb) all categorize Cybin as a buy, with Stifel increasing its price target from $5 to $11, Roth noting a $10 per share price target, and Canaccord coming in at $8.
In its report increasing Cybin’s price target, Stifel noted that “CYBN is a true multi-molecule company that’s not being reflected in its valuation.” The report further observed, “CYBN has been progressing rapidly along its path of developing a pipeline of novel psychedelic molecules, transforming the company from a single molecule strategy to a more diversified one with stronger IP opportunities.”
The report noted that the company’s proprietary CYB003, a novel 2nd-generation tryptamine, has undergone proof-of-concept studies and that the company is targeting alcohol use disorder, a relapsing disease with high unmet needs, a large addressable market and low competition. “We believe CYBN’s shares have a direct pathway for over ~3.5x upside near term as neither its primary candidate nor its first novel candidate — expected to enter clinical trials in 2021 — is fully accounted for in its valuation, offering investors with an attractive entry point,” the analysis concluded.
As a basis for initiating coverage of Cybin, the Roth analysis reported the following: “Overlooked by the pharmaceutical industry, Cybin found, in our opinion, ingenious ways to improve potency and delivery of psychedelic drugs by reformulation and by exploring deuterated analogues. Along the way the company created novel intellectual property to fend off competition.
“According to a recent study by Imperial College London, psilocybin may actually be superior to an SSRI [selective serotonin reuptake inhibitor], escitalopram, in patients suffering from major depressive disorder,” the report continued. “However, each psilocybin treatment session may last 6-8 hours, when administered orally. Cybin’s sublingual formulation bypasses the stomach, as the drug enters the bloodstream through the oral mucosa for faster onset of action. . . . TRD (treatment resistant depression) impacts over 1% of the population, unfortunately. With a relatively small 5% penetration, Cybin could achieve ~$8B in sales in the U.S. and EU5 combined, according to our calculation.”
In its report, Canaccord noted that an academic group from Imperial College London published long-awaited results from its Psilodep-RCT study in the “New England Journal of Medicine.” The study analyzed the treatment of patients with long-standing, moderate-to-severe major depressive disorder (“MDD”) over a six-week period.
“The results did not hit on the primary endpoint but were in favor of psilocybin on the primary and every secondary outcome measure,” the analysis noted. “We view the results from this relatively small trial as encouraging for the potential use of psilocybin in the depression setting. We also believe the results support the investigation of psilocybin in larger, multi-center trials, which CYBN eventually expects to pursue.”
An earlier Canaccord Genuity report noted that Cybin is using a proprietary drug discovery platform combined with novel delivery and formulation technologies to develop innovative psychedelic therapeutics to treat psychiatric disorders. After hosting several investor meetings with Cybin executives, Canaccord reported that “investor focus was on the upcoming Phase 2 program for [Cybin’s] lead product, CYB001, which is a sublingual film formulation of psilocybin to treat major depressive disorder (“MDD”). CYBN expects to start a Phase 2a trial in Jamaica (West Indies). The company then expects to file an investigational drug (“IND”) application and start a Phase 2b trial, which will include US sites, soon after.” Observing that “all eyes are on the Phase 2a data,” Canaccord called CYB001 a near-term catalyst for CYBN.
Canaccord also reported that investors are focused on the evolving intellectual property (“IP”) situation around psilocybin and that CYBN intends to uplist to a major US exchange shortly. “So we note this is a very interesting period for CYBN both as a company and as a stock, and we are reiterating our BUY rating,” the report concluded.
Cybin Corp., a leading biotech company focused on progressing psychedelic therapeutics, is on a mission to revolutionize mental health care. The company is focused on progressing psychedelic therapeutics by utilizing proprietary drug- discovery platforms, innovative drug-delivery systems, novel formulation approaches and treatment regimens for psychiatric disorders.
For more information, visit the company’s website at www.Cybin.com.
NOTE TO INVESTORS: The latest news and updates relating to CYBN are available in the company’s newsroom at https://ibn.fm/CYBN
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