Global financial services firm Canaccord Genuity has put out a DCF analysis on the share price of Cybin Inc., a Toronto-based life sciences company currently developing novel treatments and therapeutics based on psychedelic molecules. The international investment banking and financial services company has initiated coverage of Cybin with a price target of $8 CAD, according to Monday’s report.
Factors driving this prediction include:
- The advancing progress of Cybin’s drug development program, including sublingual strips for the therapeutic administration of psilocybin
- The significance of Major Depressive Disorder as the chief indication being pursued, given the unmet demand for effective treatments
- Cybin’s “relatively broad pipeline, from which at least two other candidates could enter the clinic over the next 24 months or so”
The report also notes specific positives such as Cybin’s platform-oriented approach to psychedelic R&D, it’s strong position both in regards to patents and in addressing potential upcoming IP issues related to the space as a whole, it’s access to capital, and partnership with neurotech pioneer Kernel.
Many of the risks categorized for potential investors apply not just to Cybin, but broadly to all psychedelic drug-developers. These include the relatively untried nature of psychedelic therapies —and consequently unpredictable outcomes for clinical trials, as well as legislative and regulatory issues and public perception surrounding these substances.
Key Probability for Cybin Analysis
The report fully disclaims that it’s calculations and valuation are based on model assumptions, among these being the crucial calculation on Canaccord’s part of a 50% probability of approval for Cybin’s MDD product by U.S. regulators. A change in that probability figure could easily see a corresponding increase or decrease in valuation.
Canaccord’s in-depth analysis comes at a time of increasing interest in psychedelic medicine, as a growing number of U.S. jurisdictions introduce legislation aimed at decriminalizing or legalizing psilocybin, funding research into psychedelics, or decriminalizing illicit drugs.
Truffle Report wishes to disclose that Cybin Inc. is a client of our parent company, Puff Digital.
Further, the author of this piece wishes to disclose that he owns shares of Cybin Inc.
James Stephen is a content contributor at Truffle Report. He studied Politics and International Development at Trent University and completed his Postgraduate Certificate in Book, Magazine, and Electronic Publishing at Centennial College. He has previously worked as a chef, and in his spare time is an author and freelance writer.