Cybin Inc. (NYSE-A:CYBN, NEO:CYBN) shares moved higher just after the market opened on Wednesday after the psychedelics-focused biopharmaceutical company posted fiscal 2023 third quarter results in line with expectations and indicated a year-plus of cash runway.
Cybin’s Canadian-listed shares had added 5.6% at C$0.57, while its US-listed stock added 1.2% at US$0.42.
Following the release of Cybin’s latest financials, analysts at Stifel GMP wrote in a note to clients that they were maintaining their “positive bias outlook” on the company, reiterating their C$1.50 price target with a ‘Speculative Buy’ rating.
READ: Stifel analysts still bullish on psychedelic stocks, citing attractive risk-reward profile
They noted Cybin’s cash burn for 3Q/23 came in at $10.8 million, better than the previous quarter’s $14.7 million and roughly in line with the analysts’ forecast of $11.5 million.
Cybin’s cash position of $25 million, with an additional $35 million remaining in its ATM facility, offers roughly another four to five quarters of runway, Stifel’s analysts added.
Narrowing indication for CYB004
The analysts highlighted Cybin’s recent decision to narrow its focus for its therapeutic candidate CYB004 to generalized anxiety disorder, leaving social anxiety disorder as an optionality, more efficiently using limited resources in the currently challenging environment.
“We maintain our outlook on CYB004 despite the slight pivot in chosen indication as the company could potentially achieve a deeper penetration in its targeted population with synergistic therapies that could offer better efficacy versus existing treatment options and a complete program for patients,” they wrote.
The analysts highlighted that they were expecting good top-line data from Cybin’s Phase1/2a trial of its therapeutics candidate CYB003 for major depressive disorder which is expected to be released on the company’s R&D day on February 28.
“CYB003 is the company's lead program with a deuterated psilocybin analog, pending composition of matter patent, which is expected to reduce the duration while keeping or enhancing the classical psychedelic drugs' characteristics,” they explained.
“Note that the R&D day could focus on the pharmacokinetic profile of CYB003 as well as its safety traits, essentially being a phase 1 initial readout.”
The analysts noted that generalized anxiety disorder offered a smaller market size compared with social anxiety disorder, given their prevalence of about 3% and 7% respectively, but generalized anxiety disorder frequently has comorbidity with major depressive disorder.
“Combined with CYB004's short duration of effect and CYB003's longer duration, we believe the two drugs could complement each other with interesting development and commercialization synergies, should they reach market authorization,” Stifel’s analysts wrote.
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