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On Wednesday, Cantor Fitzgerald reaffirmed its Overweight rating and $14.00 price target for Skye Bioscience shares, traded on NASDAQ: SKYE. This target sits at the lower end of the analyst range, with InvestingPro data showing price targets spanning from $14.00 to $21.00. The firm’s analysis centers on the anticipated impact of upcoming clinical trial results for Skye’s nimacimab, a CB1 negative allosteric modulator monoclonal antibody, on the company’s valuation.
Kristen Kluska at Cantor Fitzgerald highlighted that the interim results from the Phase 2 trial of nimacimab in obesity, expected in the second quarter of 2025, along with the full data set anticipated in the fourth quarter of 2025, are critical junctures for the stock. These results are seen as pivotal in determining the future direction of Skye’s market valuation.
Currently, with a market capitalization of $88 million and a share price that is just above its cash value, Skye Bioscience appears to be facing investor skepticism regarding its nimacimab program and the potential outcomes of the trial data due later this year. InvestingPro data reveals the stock has experienced significant volatility, with a beta of 1.88 and a 47.76% decline over the past six months. The company maintains a strong liquidity position with a current ratio of 14.19, indicating robust coverage of short-term obligations. This assessment follows the initial report on Skye by Cantor Fitzgerald in May 2024, which first presented the investment thesis for the biotech company.
Since that initial report, two key pieces of data have emerged that support the role of peripheral CB1 receptor inhibition in obesity treatment: the Phase 2a trial results of NOVO’s monlunabant and preclinical findings for nimacimab in a diet-induced obese model that expresses the human CB1 gene. These findings contribute to the body of evidence that may validate Skye Bioscience’s approach to treating obesity through nimacimab.
Skye Bioscience is advancing its research in a field that has garnered attention due to the global prevalence of obesity and the ongoing search for effective treatments. According to InvestingPro, which offers comprehensive analysis through its Pro Research Reports covering 1,400+ stocks, the company’s overall financial health score is "FAIR" at 2.23 out of 5, with particularly strong cash flow metrics. The company’s progress and the forthcoming data readouts are thus closely watched by investors and industry observers alike.
In other recent news, Skye Bioscience, a clinical-stage biopharmaceutical company, has made noteworthy progress in its development of nimacimab, a novel therapeutic for obesity. The company has successfully achieved over 50% enrollment for its Phase 2 CBeyond™ clinical trial, with interim data expected to be released in the second quarter of 2025. This trial, the first human study of a monoclonal antibody-based CB1 inhibitor, aims to demonstrate an 8% mean weight loss difference between nimacimab and a placebo after 26 weeks of treatment.
The company’s CEO, Punit Dhillon, has underscored the potential of nimacimab to offer a safer and more effective alternative for weight loss. In addition to its primary focus on weight loss, the trial will also evaluate the safety, tolerability, and changes in body composition of the drug. Moreover, Skye Bioscience has announced plans to share their findings and progress at major scientific conferences throughout 2025.
In 2024, the company was able to secure IND clearance for the Phase 2 study, establish a clinical advisory board, and raise $90 million in private equity financings. It also uplisted to the Nasdaq Global Market. These are significant recent developments for Skye Bioscience, which continues to focus on advancing its pipeline and delivering on key clinical milestones.
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