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Investing.com - Canaccord Genuity lowered its price target on Cybin Inc. (NYSE:CYBN) to $70.00 from $73.00 on Tuesday, while maintaining a Buy rating following the company’s fiscal fourth-quarter 2025 results. Currently trading at $7.87, the stock remains significantly below analyst targets, which range from $25.02 to $149.76. According to InvestingPro analysis, the company appears undervalued based on its Fair Value assessment.
The research firm updated its financial model for Cybin, maintaining a 40% probability of approval for CYB003 as an adjunct treatment for Major Depressive Disorder (MDD) with a potential launch in fiscal year 2029. Peak unadjusted sales projections remain unchanged at C$4.0 billion in fiscal 2036.
Canaccord increased its research and development expense estimates to account for higher clinical trial activity around Cybin’s PARADIGM Phase 3 program. The firm’s model now includes the convertible financing, noting that Cybin has drawn down $50 million of the up to $500 million available through a convertible debenture offering. InvestingPro data shows the company maintains a strong current ratio of 7.75, with liquid assets exceeding short-term obligations, though it’s quickly burning through cash with negative free cash flow of $71.77 million in the last twelve months.
The convertible debenture has a two-year payment term with prepaid interest at 5.5%. Canaccord assumes conversion at a 30% premium to the approximate share price around June 30, 2025, with conversion expected in the second half of 2026 on potential Phase 2 Generalized Anxiety Disorder (GAD) data. With a market capitalization of $181.27 million and holding more cash than debt, the company maintains a stable financial position despite its development-stage status. Unlock more detailed financial insights and 8 additional key ProTips with InvestingPro.
Canaccord’s model continues to exclude additional indications for CYB003 and other pipeline products such as CYB004, a deuterated DMT currently in Phase 2 trials for GAD, where the firm notes the unmet need is also high. The stock has experienced volatility recently, with a -12.56% return over the past week, though analysts maintain a strong buy consensus with a rating of 1.14 (where 1 is Strong Buy).
In other recent news, Cybin Inc. has initiated patient dosing in its Phase 3 CYB003 PARADIGM program for Major Depressive Disorder, which includes three studies with an expected enrollment of approximately 550 participants. The company has partnered with Thermo Fisher Scientific (NYSE:TMO) for the U.S.-based manufacturing of CYB003 and has expanded its clinical site partnership program. Cybin’s CYB003 has received FDA Breakthrough Therapy Designation, potentially expediting its review and development process. Lucid (NASDAQ:LCID) Capital Markets has initiated coverage on Cybin with a Buy rating, citing the company’s innovative approach to psychedelic drug formulations and its extensive intellectual property portfolio. Cybin has been granted a U.S. patent for its CYB004 program, designed for treating generalized anxiety disorder, with exclusivity expected until 2040. The company is conducting a Phase 2 study of CYB004, with completion anticipated around mid-2025. Cybin’s CEO, Doug Drysdale, noted the FDA’s prioritization of psychedelic drug research, emphasizing the potential for accelerated approval pathways. The company continues to develop its clinical programs, aiming to address significant unmet needs in mental health treatment.
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