This Psychedelics Stock Could Grow 300% In One Year

Cantor Fitzgerald initiated coverage of Cybin CYBN, a drug development company in the psychedelics sector.

Analysts gave Cybin an overweight rating and a 12-month price target of $9. Cybin shares were $2.25 at the time of this writing. 

This means that according to the financial firm Cybin stock could give a margin of 300% in just one year.

Cybin debuted on the NYSE earlier this month with a pipeline of novel psychedelic molecules for the treatment of diverse mental health indications.

Its lead candidate is a proprietary delivery method for psilocybin in the form of a sublingual film called CYB001, which is targeting major depressive disorder and is currently in phase 2 clinical trials.

As psilocybin, the active ingredient in so-called “magic mushrooms,” advances through several clinical trial programs, Cybin’s formulation could “prove to be a driver of scalability for the new paradigm of psychedelic-assisted therapy of the future,” according to Cantor analysts Charles C. Duncan and Pete Stavropoulos.

While Cybin’s current cash on hand will not be disclosed until the next earnings call, the analysts estimate that adding the company’s recent CA$34 million ($26 million) raise, its current cash holdings could reach CA$87.5 million ($68 million).

This gives it enough capital to advance clinical research for its lead candidate as well CYB003 and CYB004, which are proprietary psychedelic molecules aimed at alcohol-use disorder and anxiety disorders, respectively.
In a recent interview with Benzinga, Cybin CEO Doug Drysdale said the company is very well capitalized for “many years into the future.”

Photo: Gerd Altmann on Pixabay