3 Reasons to Watch This Psychedelics Stock | Cybin $CYBN
Cybin Inc (NEO:CYBN, NYSEAMERICAN:CYBN) is taking classical psychedelics like MDMA, psilocybin, and DMT and turning them into therapeutics for mental health disorders like depression and addiction. The original psychedelic compounds can be very aggressive and provide unwanted side effects. Cybin aims to develop novel molecules using the active compounds found in psychedelics and develop them to be more pleasant for patients.
Cybin has recently announced three pieces of news that could be catalysts for company growth this year.
First, Cybin’s depression program (CYB003) moved closer to advancing into clinical development for the treatment of major depressive disorder (MDD) and alcohol use disorder (AUD). The company had a successful meeting with MHRA (the European equivalent to the FDA), showing a strong validation for Cybin’s preclinical depression studies later this year.
Second, Cybin’s anxiety molecule (CYB004) was granted a composition of matter patent. CYB004 is Cybin’s lead investigational proprietary DMT compound. In preclinical studies, CYB004 has demonstrated potential efficacy at lower doses while also increasing the duration of drug effect, providing a therapeutic profile that may alleviate the common negative experiences associated with classical DMT.
Third, The Chopra Foundation announced a partnership with Cybin to increase education and awareness to use psychedelics to treat mental health. There are still many stigmas and misinformation associated with psychedelic compounds that need to be fully addressed to unlock the full benefits these compounds could help with.
It hasn’t been a very nice ride for investors in the psychedelics market this year. However, Cybin CEO Doug Drysdale believes that the companies advancing the psychedelics field will benefit once the economic climate starts improving.
“There’s been a bit of a move out of speculative stocks, like biotech and psychedelic stocks because of the continuing economic uncertainty, interest rates inflation, covid and geopolitical uncertainty we are seeing in Russia and Ukraine. So there have all affected those more speculative stocks but I think as we go through the year and we see things start to stabilize a bit in the general markets and we start to see psychedelic companies like Cybin execute then I think that interest will certainly come back” – Cybin CEO Doug Drysdale
Watch the full interview to learn about the catalysts and milestones coming up for Cybin in 2022.
Doug Drysdale is back. He’s the CEO of Cybin Inc, trades on NEO under the symbol C.Y.B.N in the United States under NYSE:CYBN. Doug, welcome back.
Hey, James can see you again. Thanks for having me.
You bet. It’s a pleasure. As usual, Doug. Lots of news lately. What’s the latest Cybin?
Yes, lots of news recently.Three main things I would say. The first is that for a depression program C Web three, we had a very successful meeting with the UK regulatory authorities, the MHRA, which is the equivalent to the FDA. Very positive and productive meeting. A meeting of minds, if you like. That’s good preparation for our upcoming Depression study. Later this year. So really strong validation for our preclinical program with what we were doing and our oncoming depression studies.
The good news, the second piece of news is, is that for our anxiety program c y before we were just granted a patent from the US federal office. This is a composition of matter. Patent for a molecule. It’s, it’s a generic diversion of DMT or dimethyl tryptophan and its important molecules because DMG typically is very aggressive very sharp plasma spikes that could be quite, quite challenging for patients.
And I’ll see what I’ll see what I’d be for. Molecule is designed to be smoother and less aggressive and more pleasant so that that time goes out to 20, 41. So it protects the investments we’re making in development. The development there. So that’s, that’s obviously good news and supporting that program. And then lastly, just yesterday, the Chopra Foundation, Dr. Deepak Chopra announced a partnership with Simon.
That group has been working for decades to improve awareness education around mental health disorders. And we still have quite a lot of stigma and misinformation around mental health and psychedelics. Just the other day, we were speaking to a scientist that supports regulators, and their first reaction to psychedelics was that these molecules are addictive and cause suicidality. Both are a single false, by the way.
But concerning that, we have people in those positions that are still misinformed. And so we clearly have a lot of work to do to improve education awareness around this research. So great to be partnering with the Chopra Foundation, helping us with some of that.
Yeah, that’s fascinating. Well. Great Where do these where do these trials take place? Like, where does is where are the subjects coming from?
So a first study in depression which will kick off around mid-year this year, will be in the US. So we’re planning now and filing with the FDA next quarter. So it’ll be in a center on the East Coast. And so far from our initial study at the University of Washington, we’re seeing a huge amount of demand. So that’s a study that kicked off in December of last year.
And we’re just looking to help to recruit 30 patients. And we’ve already got a waiting list of about 2000 patients. So it just shows you just the extent of demand and the extent of the issues that we’re trying to deal with.
So then around the world, is it your sense that the psychedelic sort of penetration of mental health is is proceeding as well as it possibly could, or is it more so that the amount of competition is causing some dilution to the entire value proposition?
No, I think it’s progressing well. Yes, there are lots of companies working in the space, but I think that somewhat it’s to be expected in an early, early situation like this. And to some extent, having multiple companies working in the space helps fuel innovation. So we’ll see some consolidation for sure. But but I think it’s a good thing for now.
And these multiple companies are sponsoring studies at centers all around the world, in the Netherlands, in the UK, in the US, in Australia, and that’s helping to educate regulators and policymakers in all of those jurisdictions.
So I think it’s a good thing for your subsidiary, Adelphia. What’s the latest there?
Yes. So we acquired a duty of therapeutics back in December of 2020.That team has been phenomenal. They really are the core of our R&D efforts to fully integrate it into the side and team and all of the work that they’ve been doing, all of the milestones that they’ve been hitting have been to complete the pre-clinical work. We need to to put a package together in front of the regulators. And that package will support us moving into human studies later this year.
So I would see a deal really as a Simon as fully integrated. And of course, that that transaction has proved to be very fruitful in
Doug, as we look out across the entire universe of publicly traded psychedelics, researchers in companies. The the sector is essentially been characterized by a lot of a sell off. And so stock prices are down and volumes are starting to, you know, thinned out a bit.What is what is it about the psychedelic sector that is causing this general malaise?
Yeah, it’s the sector is down, that’s for sure. Since since November, some of the cycling ETFs are down 40% or so in the same timeframe. The biotech index is down 30% or so. So, you know, while the S&P is down maybe three or 4%, so that we have a bit of a bounce back in the S&P. So I’d say that there’s been a bit of a move out of speculative stocks like biotech stocks, psychedelic stocks because of the continuing economic uncertainty Interest rates, inflation covered, and the issue about geopolitical uncertainty that we’re seeing in Russia, Ukraine.
So these are all affected those most affected stocks. But I think as we go through the year and we see things start to stabilize a bit in the general markets and we start to see psychedelic companies like Cyber and execute, then I think that interest will mostly come back.
So there’s nothing in the psychedelic sector that is causing investors to lose faith.It’s more just a general sort of anticipation of the reduction in stimulus and the increase in interest rates that is causing markets to deflate generally.
I think that’s I think that’s true. You know, I do think there was some potential overreaction to some of the so-called three 60 data that came out in early November, those really driven by, I think, inflated expectations that these molecules will be panaceas, which of course, that’s unrealistic to expect that any treatment would work miraculously for every person.
So a bit of reaction there. But I think the larger reaction in the sector is really economically driven
Mm hmm. Okay. So then in 20, 22, what are sort of the biggest achievements you expect to accomplish?
Some really big catalysts coming up. So this next quarter will complete all of our preclinical studies to see why B, three, 59 D with the FDA, they’ll be our first molecule base.
And so big milestone for us and that means that we should be able to start a study in depression in human patients right around midyear for that molecule with maybe some data by the end of the year, which which would be exciting to get to first read out on peak and safety and then for anxiety program C long before we also plan to run a study this will likely be in Europe is kicking off around the third quarter a pilot study in anxiety disorders.
Sure. I’m curious about the your your modified DMT treatment in terms of like what is the what is the psycho chemical mechanism that you employ that diminishes the unpredictability and the sort of extreme visuals in the DMT experience that cause some people to view the entire experience as unpleasant
Yeah, well, all of the unpleasantness comes from the aggressive plasma curve.So literally DMT goes up to a very high spike and back down again in 10 minutes, which is which is pretty aggressive. So what we’re able to do through our chemistry, we’re using a process called do duration, which is substituting hydrogen atoms on the DMG molecule with deuterium, which is heavy hydrogen that slows the whole breakdown process down. So with that means that our DMT version gets into the bloodstream quickly.
The peak isn’t as high, which and the slowing the breakdowns are still coming down so rapidly. So overall, the curve is extended and smoother And we’re hoping to create a more a more pleasant, a more pleasurable experience for the patient rather than this aggressive spike that you see with classical DMC.
Sure. So among the psychedelic compounds, do you see any sort of having a broader application or a more much more rapid penetration of the market over the others? For example, does this psilocybin have more of a broader audience potentially than DMT or are they are they all kind of like still too early to say?
I think it is a little bit too early to say. And I think that all of these conditions manifest themselves in different ways in different patients. So not every depressed patient that’s the same, certainly not homogenous and also has a lot of co-morbidities between these conditions.
So patients that have I have anxiety disorders may go on to develop depression. Patients that are depressed may turn to substances for support and become addicted. So our goal is to develop a portfolio of approach based upon psilocybin and DMC analogs and derivatives. We’re also looking at analogs, narratives of MDMA. And a goal is to be able to give physicians a choice so they can look at the different profiles of all these molecules and matched them to the appropriate patient and condition.
Great to hear that things are going well. Doug, we’ll have you back again soon. Thanks for your time today.
Thanks, James. Thanks for having.
Take care. You bet. Bye for now.