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Cybin Shares Q2 Financial & Business Results, Focus On Licensing Deals For Preclinical Assets

Benzinga · 11/15/2022 15:13

Cybin Inc. (NYSE:CYBN) reported its unaudited financial results for its second quarter ended September 30, 2022, and provided business highlights for the period. The psychedelics biopharma company is Canada-based and operational in Canada, the US, the UK, the Netherlands and Ireland. 

CEO Doug Drysdale said: “We have continued to make progress as planned, advancing our clinical pipeline of modified psychedelic-based molecules while also strengthening our drug discovery platform of differentiated preclinical compounds.”

Drysdale explained that Cybin has broadened its IP portfolio through strategic licensing agreements for preclinical compounds supporting ongoing drug developments.

“Our commitment to discovering and developing innovative psychedelic-based treatment options for areas of high unmet need is unwavering. We are focused on strengthening our position as an innovator in the industry and thereby differentiating ourselves in the psychedelics space to deliver long-term value to all our stakeholders,” he said.

Q2 financials show cash totaled $22.5 million (CA$29.9 million) as of September 30, 2022, and $20 million (CA$27.1 million) as of November 14, 2022.

Cash-based operating expenses totaled $8.5 million (CA$11.3 million) of which $1.5 million (CA$2.0 million) were one-time costs, while cash flows used in operating activities were $11 million (CA$14.7 million) for the quarter ended September 30, 2022 of which $1.9 million (CA$2.5 million) were one-time costs and $1.8 million (CA$2.4 million) were recorded to prepaid expenses related to future clinical work.

Net loss was $7.5 million (CA$10.0 million) for the quarter ended September 30, 2022.

Following an at-the-market (ATM) $35 million equity program, as of November 14 Cybin is entitled to issue and sell up to an additional $28.9 (CA$38.4) million of common shares.

Pipeline & Businesses

The company’s pipeline update includes completed dosing for almost all cohorts of its Phase 1 clinical trial on proprietary DMT compound developed for anxiety CYB004-El with no clinically significant safety or tolerability issues, plus beginning of dosing in the Phase 1/2a trial of deuterated psilocybin analog CYB003 for the treatment of Major Depressive Disorder (MDD).

Other developments include CYB005, a phenethylamine derivative for the potential treatment of neuroinflammation, a program which the company expects to provide an update in the coming months, and Kernel Flow technology, co-developed with partner HI, LLC dba Kernel, for which Cybin expects to report data from a Phase 1 feasibility study measuring ketamine's psychedelic effect on cerebral cortex hemodynamics at the end of 2022.

As for partnerships, Cybin engaged in numerous licensing agreements, including a catalog of tryptamine-based molecules acquired from Mindset Pharma, in order to complement its existing preclinical library, broaden IP reach and create a path for potential future pipeline expansion. 

Noticeably, the deals also provide Cybin access to IP from more than 15 patents or patent applications, and the company now has access to more than 35 patents and applications through a combination of internal filings and licensing arrangements.

Photo courtesy of PublicDomainPictures and sergeitokmakov on Pixabay.