Skye Bioscience Inc. (NASDAQ: SKYE) has maintained its Outperform rating and a $21.00 price target from Oppenheimer, with the firm's optimism ibuoyed by the initiation of the Phase 2 CBeyond trial, which is investigating nimacimab, a pioneering CB1 inhibitor antibody aimed at treating obesity.
The trial is seen as a significant development for patients with obesity due to nimacimab's potential to meet substantial unmet medical needs. The Phase 2 trial's design was thoroughly discussed during a recent Key Opinion Leader (KOL) event hosted by SKYE.
Several aspects of the trial were highlighted as reasons for the positive outlook: the trial is well-powered with 120 participants to demonstrate an 8% weight loss adjusted for placebo effects within 26 weeks, the potential for nimacimab to stand out due to its safety and tolerability profile, and its peripheral activity that could avoid the neuropsychiatric side effects associated with small molecule CB1 inhibitors.
The study includes both monotherapy and combination therapy with semaglutide, measured against respective placebos.
Oppenheimer's coverage notes that the rigorous design of the trial, which includes nimacimab as both a standalone treatment and in combination with semaglutide, is a strategic approach that could further validate the drug's efficacy and safety. The anticipation for interim data, which is expected to be released in the second quarter of 2025, adds to the positive sentiment surrounding SKYE's stock.
In addition to the ongoing trial, there is also an anticipation of a positive impact from upcoming Phase 2 data for another CB1 inhibitor, monlunabant (INV-202), which is being developed by Novo Nordisk (NYSE:NVO). This data, expected to be released in the third quarter of 2024, could provide additional insights and potentially reinforce the therapeutic promise of CB1 inhibitors in obesity treatment.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.