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  /  Investment Thesis   /  QUARTERLY IN DEPTH INVESTMENT ANALYSIS UPDATE – CYBIN INC (NYSE: CYBN)

QUARTERLY IN DEPTH INVESTMENT ANALYSIS UPDATE – CYBIN INC (NYSE: CYBN)

Disseminated on behalf of CYBN Inc (CYBN)

QUARTERLY IN DEPTH ANALYSIS UPDATE

CYBIN INC

This communication is not an offer to buy or sell securities nor is it to be construed as personal investment advice. Nothing contained in this communication should be relied upon as a promise or representation as to future performance.

As I mentioned yesterday during the Live Stream, I want to provide you with an update on a Small Stock Investment Thesis that I presented in June of this year. For those of you that are new to Spartan Trading, or are just receiving our free weekly newsletter for the first time, my goal is to cover one company in detail every quarter that I feel has good investment potential when considering risk / reward.

I have spent a lot of time researching this Biotech space and the different avenues / possibilities this company has ahead of themselves, including extensive due diligence and interviewing members from the executive team (including the CEO, Doug Drysdale).

My previous thesis explored this companies Research Studies, Pipeline Progress, and overall Market Potential and I would recommend checking it out if you want to see my initial entry points and reasoning. That said, based on some recent news and sector updates, I feel this name is still in a good position to gain additional market share and growth in the short and medium term.

Cybin Inc (NYSE: CYBN; NEO: CYBN.NE)

Currently our trade idea on CYBN is up 100% from my initial entry point in June and, in my opinion, feel there is plenty still left on the table.

Below I want to provide a short update on this name and why I feel that an add back at these current levels would make sense, covering 7 key points:

    1. Steve Cohen & Point72 Asset Management’s Recent Investment in $CYBN
    2. $CYBN recent acquisition of Small Pharma Inc. ($DMTTF)
    3. CYB003 Phase 2 Readout
    4. CYB004 Phase 1 Readout
    5. Recent Financing Activities
    6. Internal Sector Comparison
    7. New Targets Given the Recent Changes

Steve Cohen & Point72 Asset Management’s Recent Investment in $CYBN

Billionaire Steve Cohen’s hedge fund, Point72 Asset Management, has recently acquired an 8.1% stake in Cybin Inc. This investment, revealed in a recent SEC filing, amounts to approximately 18.95 million common shares, valued at around $8.34 million at the market price of $0.44 per share on the Canadian Exchange at the time of acquisition. This move marks Point 72’s first foray into the psychedelic medicine sector (which is significant IMO).

Cohen’s foundation, the Steven & Alexandra Cohen Foundation, had previously donated $5 million to the Multidisciplinary Association for Psychedelic Studies (MAPS) for MDMA-assisted therapy research. Cybin also recently announced its acquisition of DMT drug developer Small Pharma Inc., solidifying its position as a key player in the industry. The company is on track to release conclusive efficacy data on its CYB003 Psilocybin analogue by the end of the year.

Overall, the Steven & Alexandra Cohen Foundation has contributed over $31.3 million to psychedelic research through its Psychedelic Research & Health Initiative.

$CYBN recent acquisition of Small Pharma ($DMTTF)

CYBN has recently announced its acquisition of Small Pharma Inc., a UK based biotechnology company established in 2015 focused on short-duration psychedelic-assisted therapies for mental health conditions. With 8 years of research and $60 million dollars of investment into the company, it is currently anticipated that this transaction will close officially on or about October 23, 2023 after recently obtaining approval from the Supreme Court of British Columbia.

For those that are not familiar with Small Pharma here are some key points as to why I feel this acquisition will establish Cybin Inc as a market leader in Novel Psychedelic Therapeutics:

            • Small Pharma Inc. is an international, clinical-stage leader with potential to transform the treatment paradigm for mental health conditions.
            • Their two proprietary, advanced clinical programs in development for depression and anxiety disorders with demonstrated safety and efficacy were the industry’s largest, most advanced and well-protected deuterated DMT program.
            • Small Pharma’s DMT program is reporting that patients in the program have a 40% remission rate in 6-months off one dose (which is a pretty spectacular result that is unheard of).

Key Data: Results suggest that SSRIs enhance the efficacy of SPL026 (DMT) when administered to MDD patients on a stable dose of SSRIs versus patients not on SSRIs; At Week 4, 100% of patients in the SSRI cohort responded to SPL026 (DMT) with 92% of patients in remission from depression; No apparent differences in the safety and tolerability profile of SPL026 (DMT) following administration to participants in the SSRI and non-SSRI patient cohorts.

          • The acquisition of Small Pharma Inc. provides strong synergies across key assets, operating teams, capabilities and IP. Combined with Small Pharma Inc., Cybin now has the largest Intellectual Property (IP) portfolio in the psychedelic drug development sector, with over 30 patents granted and more than 160 patents pending.
          • These new multinational operations support scaling to Phase 3 development of CYB003 in early 2004, following planned Phase 2 safety and efficacy data readout in late 2023. CYB003 is going into Phase 3 in Q1 2024, the final stage before approval.
          • Cybin’s acquisition of Small Pharma is expected to create the largest DMT dataset in the sector and the most robust clinical-stage DMT program.

Cybin & Small Pharma’s Combined Pipeline

CYB003 Phase 2 Readout

Cybin expects their Phase 2 Topline efficacy data readout for CYB003 in Q4 2023.  This proprietary deuterated psilocybin analog may provide a safe and effective outcome for patients and providers and has IP protection in support of CYB003 until 2041.

Their CYB003 Phase 1 & 2 Summary of data from Cohorts 1-3 has already shown:

          • CYB003 was absorbed quickly and reached peak plasma levels within an hour.
          • Psychedelic effects were seen within ~15 minutes and average duration of peak effects lasted ~2 hours. This is significant as it may demonstrate their ability to provide a solution that can be administered within a short time frame, allowing for scalability in the future (i.e. doctors would be able to administer dosing to a larger number of patients in a shorter period of time).
          • Preparations are underway for a potential Phase 3 pivotal study in early 2024.

CYB004 Phase 1 Readout

Cybin’s CYB004 Deuterated Dimethyltryptamine (dDMT) has potential to overcome existing limitation of DMT in its native form and is a new chemical entity. With a U.S. compositional of matter patent granted through 2041, Cybin is expecting Phase 1 topline data in Q4 of 2023 and to initiate a Phase 2 proof-of-concept study in Q1 2024. If results are positive, this would be a significant step forward for Cybin’s CYB004 program and is worth watching in my opinion.

Recent Financing Activities

On August 4 Cybin announced a closed financing of 8.25 million USD. This was right before Billionaire Steve Cohen’s hedge fund, Point72 Asset Management, acquired an 8.1% stake in Cybin Inc. IMO this is significant as it has expanded their runway for an additional 2.5 months+ on top of the cash they already had on hand

Internal Sector Comparison

$CYBN is a leader in the space and is the only company in the space that is still above their go-public price. What is even more impressive is that they are up more than all their competitors combined from a percentage standpoint. Below I have included a graph showing their Year-to-Date Returns (Daily) as well as their 30 Day Average Volume.

Year-to-Date Returns (Daily)

30-Day Average Daily Volume

New Targets given the Recent Changes

My new target on $CYBN going forward, if we do get positive readout data, will be a push through the recent range resistance levels of $0.72 and $0.87 into the $1.14 – $1.30 range on the upside.

Cybin Inc (NYSE: CYBN; NEO: CYBN.NE)

  • Idea: Long CYBN $0.50 – $0.60
  • Target Area: $1.14 – $1.30+
  • Risk: $0.30
  • Time Frame: 2 – 6 Months

Current Idea is a speculation long on CYBN (2 – 6 months).

Best Regards,
Spartan (aka ‘Chris’)

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BLACK FRIDAY EXTENDED FOR CYBER MONDAY!

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