In a report released today, Patrick Trucchio from H.C. Wainwright maintained a Buy rating on Cybin (CYBN – Research Report), with a price target of $10.00.
Patrick Trucchio’s Buy rating on Cybin’s stock is primarily based on the promising interim data from the Phase 2 trial of the company’s leading psychedelic program, CYB003. The program showed significant progress in decreasing symptoms in patients with major depressive disorder (MDD) after a single 12mg dose. Furthermore, all doses of CYB003 have reported good tolerance with no serious adverse effects related to the treatment. Trucchio believes that such findings substantiate the potential role of psychedelic medicines in treating depression.
In addition to these positive clinical findings, Trucchio’s rating is also influenced by his valuation of the company using a discounted cash flow-based valuation methodology. He predicts a 55% success rate for CYB003 in MDD and AUD, and expects revenue generation from the psychedelic platform to start in the late 2020s. Also, he anticipates equity raises ranging from C$45M-C$150M annually from 2024 to 2027. Despite acknowledging potential risks such as clinical development risks, regulatory risks, and market uncertainty, Trucchio’s overall valuation of the company results in a firm value of approximately $2.7B and a $10 price target, justifying the Buy rating for Cybin’s stock.
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Cybin (CYBN) Company Description:
Using cutting-edge drug discovery platforms and drug delivery systems, Cybin develops psychedelic therapies to address the mental health crisis.
Read More on CYBN:
- Cybin announces grant of two US patents protecting deuterated DMT program
- Cybin completes dosing in final cohort of CYB003 trial
- Here’s What You Missed in Cannabis, Psychedelics This Week
- Cybin acquisition of Small Pharma to close in Q4
- Cybin: Small Pharma data demonstrate efficacy/safety of DMT with SSRIs
