Roth Capital Partners, an investment banking firm headquartered in Newport Beach, California, has initiated price coverage of Cybin Inc., a Toronto, Canada based developer of alternative medicalized psychedelic compounds, with an initial price target of $10 USD per share.
The 67-page report from Roth lists factors in its buy rating and 12-month targeted valuation of Cybin as including:
- Cybin’s “ingenious ways to alter formulations and develop deuterated analogues of psychedelics, creating novel intellectual property”
- Recently published research materials by Imperial College London indicating that results with psilocybin in the treatment of major depression compare favourably to SSRIs, the current preferred pharmacological option
- The urgent need and potential revenues associated with the creation of novel and effective therapeutics to address Treatment-Resistant Depression (TRD)
The firm’s equity research features, among other aspects, a comprehensive background and rationale compiled by Roth Capital on the history of clinical psychedelic studies, notes and timelines of contemporary research developments throughout the space, and diagrams detailing methods of action for psychedelic substances. It also offers the following statement to investors detailing the frankly bleak global picture for mental health responsible for Cybin’s research along with much of the current interest in psychedelic treatments.
“Mental Illness rates in the United States as well as globally are increasing at unprecedented rates. Depression has increased significantly among persons in the U.S. from 2005 to 2015, from 6.6% to 7.3% and especially among ages 12 to 17 increased 8.7% to 12.7% according to a study done by Columbia University. The world and in particular the U.S. is in the midst of what psychologists and other experts are calling a mental health epidemic. Due to side effects of current medications for mental illnesses, only 44.8% receive treatment.”
The move comes as the latest announcement in a big week for psychedelic markets, as the Nasdaq uplisting and New York Times coverage of fellow sector leaders MindMed and Numinus, respectively, vie for the public eye and investor confidence in the nascent industry. Financial services firm Canaccord Genuity had previously initiated coverage of Cybin at $8 CAD per share. Truffle Report was granted a copy of the latest brief by Roth Capital.
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.