Well, look who’s back in the spotlight.
After months of slogging through a bear market hangover, Cybin Inc. (NYSE: CYBN) just reminded the market that sometimes, the trip isn’t over, even when you think it is.
Over the past few days, Cybin shares have jumped on the back of something Wall Street actually likes to see from a clinical-stage biotech: cash, conviction, and clarity.
Let’s break it down.
$175 million in play
The big catalyst came earlier this week, when Cybin announced a $175 million registered direct offering. It’s actually a pretty sizable financing for the psychedelics sector. And quite frankly, it represents a serious statement: institutional money is bullish.
With this infusion of cash, Cybin plans to pay off its debt, advance its Phase 3-ready CYB003 program (a deuterated psilocybin analog for depression), and push other pipeline compounds forward. Translation: they’re not running out of runway anytime soon.
Yes, dilution stings. But make no mistake: the alternative was far worse. In the current biotech market, liquidity equals survival. And Cybin just bought itself several years of breathing room.
Technically speaking
It’s also worth noting the chart …
After about a month or so of drifting near its record lows, Cybin’s stock started flashing technical buy signals: volume spikes, RSI confirmation, and short-covering momentum. Traders noticed.
Combine that technical setup with a financing that clears balance-sheet risk, and you’ve got the perfect cocktail for a short-term pop.
To be sure, there’s a subtle shift happening in the mental-health biotech space. Investors are starting to realize that psychedelic-assisted therapies aren’t just a curiosity — they’re a multibillion-dollar market in waiting.
In fact, just a few months ago, a psychedelics-based startup Gilgamesh Pharma, sold its lead program - the novel psychedelic Bretisilocin - to AbbVie (NYSE: ABBV) for $1.2 billion. That’s billion - with a “B.” And we expect to see more of this action in the psychedelics space in the coming months and years.
Of course, Gilgamesh Pharma isn’t a public company, but there are plenty of public psychedelics companies worth keeping your eye on. These include, but are not limited to …
- Compass Pathways (NASDAQ: CMPS)
- atai Life Sciences (NASDAQ: ATAI)
- MindMed (NASDAQ: MNMD)
- GH Research (NASDAQ: GHRS)
- PharmaTher Holdings (OTCBB: PHRRF)
While the market seems to be embracing Cybin’s recent offering, I wouldn’t be quick to run out and buy it right now. It’ll likely take a few weeks for the market to fully digest the news, and of course, there will be long-term holders looking to sell at least a portion of their holdings on this big run. That being said, long-term, Cybin is no slouch, and might be worth picking up on any significant sell-off. Certainly we’ll keep you posed.
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