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On Friday, Cantor Fitzgerald reaffirmed its Overweight rating and $14.00 price target for Skye Bioscience (NASDAQ:SKYE) shares. The target sits within the broader analyst range of $9.50 to $21.00, though the stock has faced significant headwinds, declining 24.4% in the past week and 85.35% over the last year. InvestingPro analysis reveals additional insights about SKYE’s market position, with 12 key ProTips available for subscribers. Following Skye’s fourth-quarter earnings report and conference call, analyst Kristen Kluska provided insights on the company’s progress. The attention is primarily on the upcoming Phase 2a results for nimacimab (CB1 negative allosteric modulator monoclonal antibody) in treating obesity. Skye Bioscience announced a change in their reporting schedule, stating that an interim readout originally expected in the second quarter of 2025 will no longer take place. Instead, the company plans to release topline data later in the year, between late third quarter and early fourth quarter of 2025, which is a slight delay from the previously anticipated fourth quarter of 2025.
The company has also decided to extend the dosing period in their study to 52 weeks, increased from the originally planned 26 weeks. This extension aims to gather more comprehensive data on the long-term safety, tolerability, and efficacy of nimacimab. The results from this extended study are expected to be available in the second quarter of 2026.
Skye Bioscience concluded the year with a financial position of $68.4 million, which is projected to fund their operations until at least the first quarter of 2027. The company maintains a strong liquidity position with a current ratio of 16.32, indicating robust short-term financial health. This financial runway is crucial for the company as it continues to develop its drug and await the pivotal trial results. The extended timeline for the Phase 2a study of nimacimab is a significant update for investors and stakeholders looking forward to understanding the potential impact of this treatment on obesity. For a comprehensive analysis of SKYE’s financial health and growth prospects, including detailed valuation metrics and peer comparisons, check out the full research report available on InvestingPro.
In other recent news, Skye Bioscience reported its financial results for the fiscal year 2024, revealing a narrowed net loss of $26.6 million, down from $37.6 million in 2023. The company also experienced a significant increase in research and development expenses, which more than tripled to $18.7 million. Skye Bioscience maintains a strong cash position with $68.4 million, which is expected to fund operations through the first quarter of 2027. Enrollment for their Namosumab study exceeded expectations, with 136 patients enrolled, surpassing the initially planned 120 patients.
Citizens JMP analyst Jonathan Wolleben reiterated a Market Outperform rating for Skye Bioscience, with a stable price target of $15.00. Wolleben highlighted the potential of nimacimab within the CB1 inhibitor pipeline, noting the swift enrollment in the Cbeyond study as a positive indicator. Skye Bioscience plans to release full Phase 2a data for nimacimab slightly ahead of schedule, a strategic decision due to the market’s low tolerance for variability in interim data. The company is also planning an analyst event at the American Diabetes Association meeting in June 2025 to provide insights into the expectations for Cbeyond data.
Additionally, Skye Bioscience is focusing on the development of its innovative CB1 inhibitor, Namosumab, which is advancing in clinical trials. The company has initiated GMP manufacturing runs and has plans for optimization and scale-up of production. Skye Bioscience’s CEO, Puneet Villan, emphasized the need for diverse therapeutic options in treating obesity, underscoring the company’s commitment to developing innovative treatments in the obesity treatment market.
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