Skye Bioscience (NASDAQ:SKYE) Issues Quarterly Earnings Results

Skye Bioscience (NASDAQ:SKYE) issued its earnings results on Friday. The company reported ($0.27) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.29) by $0.02, Zacks reports.

Here are the key takeaways from Skye Bioscience’s conference call:

• Skye and Redx agreed to combine and form Fibrx Therapeutics, a Nasdaq-listed pure-play fibrosis company. The transaction includes $125 million of financing and is expected to fund operations through 2029 and key clinical milestones.
• Fibrx’s lead asset, RXC008, is expected to enter a Phase II trial in fibrostenotic Crohn’s disease in the fourth quarter of 2026, with topline data anticipated in the second half of 2028. Management highlights the condition’s substantial unmet need, with no approved therapies targeting its fibrotic component.
• RXC008 demonstrated favorable Phase I tolerability, negligible systemic exposure, no evidence of hypotension, and GI tissue concentrations within the predicted efficacy range. Preclinical studies showed reversal of established fibrosis, though these findings remain to be validated clinically.
• Skye discontinued the Phase II CBeyond trial of nimacimab and paused development, citing a rapidly advancing obesity-drug market and concerns that the required dose and injection volume would not offer sufficient convenience or differentiation relative to the substantial Phase III investment.
• Upon closing, existing Skye shareholders are expected to own approximately 5.38% of the combined company, while Redx holders and financing investors are expected to own approximately 59.75% and 34.87%, respectively; ownership remains subject to adjustment based on Skye’s net cash. The transaction is targeted to close in the fourth quarter of 2026, subject to shareholder, court, listing, and other customary approvals.

Skye Bioscience Trading Down 7.3%

Skye Bioscience stock opened at $0.50 on Friday. The stock has a 50-day moving average price of $0.65 and a 200 day moving average price of $0.74. Skye Bioscience has a 52 week low of $0.28 and a 52 week high of $4.99. The stock has a market cap of $17.62 million, a PE ratio of -0.39 and a beta of 2.97.

Analysts Set New Price Targets

Separately, Weiss Ratings restated a “sell (d-)” rating on shares of Skye Bioscience in a report on Friday, July 10th. Two research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of “Hold” and an average target price of $8.00.

Institutional Investors Weigh In On Skye Bioscience

Hedge funds and other institutional investors have recently modified their holdings of the company. Vanguard Group Inc. lifted its stake in shares of Skye Bioscience by 5.3% during the third quarter. Vanguard Group Inc. now owns 882,785 shares of the company’s stock valued at $3,469,000 after buying an additional 44,824 shares during the period. Marshall Wace LLP purchased a new stake in Skye Bioscience in the 2nd quarter worth approximately $436,000. Two Sigma Investments LP raised its holdings in Skye Bioscience by 46.2% in the 3rd quarter. Two Sigma Investments LP now owns 92,318 shares of the company’s stock valued at $363,000 after acquiring an additional 29,163 shares during the last quarter. XTX Topco Ltd acquired a new position in Skye Bioscience in the fourth quarter valued at $40,000. Finally, Qube Research & Technologies Ltd purchased a new position in Skye Bioscience during the second quarter worth about $218,000. 21.09% of the stock is currently owned by hedge funds and other institutional investors.

Skye Bioscience Company Profile

Skye Bioscience, Inc is a clinical-stage biotechnology company focused on the development of novel, selective cannabinoid type 1 (CB1) receptor modulators for the treatment of ocular diseases. Headquartered in Sunnyvale, California, Skye Bioscience leverages proprietary chemistry and formulation expertise to design and optimize compounds with high potency, tissue selectivity and favorable drug-like properties. The company’s lead product candidate is being evaluated for the treatment of glaucoma and other ophthalmic conditions characterized by elevated intraocular pressure.

Skye Bioscience’s pipeline centers on synthetic cannabinoids engineered to avoid central nervous system side effects commonly associated with traditional cannabinoid therapies.