What happened
Shares of Cybin (CYBN 0.99%), a pre-commercial drugmaker focused on developing psychedelics, fell more than 17% this morning. The company reported success with CYB003, a novel psilocybin analog, but the stock was still down 11.7% as of 11:59 a.m. EST on Monday.
So what
Cybin's lead candidate, CYB001, is essentially psilocybin delivered under the tongue for the treatment of major depressive disorder. Today, the company reported pre-clinical results for CYB003, an orally disintegrating tablet that contains a slightly heavier version of psilocybin.
Image source: Getty Images.
CYB003 uses deuterated hydrogen instead of its lighter cousin in an attempt to improve natural psilocybin's pharmacokinetic profile. Heavier drugs tend to remain in the bloodstream longer. In studies with multiple species, CYB003 demonstrated a 50% reduction in variability compared to oral psilocybin.
The stock is falling today because experienced biotech investors know that results from animal studies generally don't merit a press release. Pre-clinical trials are simply a prerequisite to beginning trials with people.
Now what
It's probably a good idea to steer clear of this hyper-risky psychedelic stock until the company displays some evidence of a benefit over run-of-the-mill psilocybin capsules for actual people. Unfortunately, it could be a very long time before we know if any of Cybin's new drug candidates fit the bill.
Cybin hasn't registered any clinical trials in the U.S. yet, and today's announcement seems like a pivot away from CYB001 before it even gets started. In May, the company, which has its headquarters in Toronto, received approval from a hospital in Jamaica to begin a clinical trial with CYB001. If the company has started dosing patients, though, it hasn't told anyone about it.
The delays to CYB001's development could be innocuous. When dealing with pre-commercial-stage companies that boast of every minor development the way Cybin does, it's probably better to assume no news is bad news.
