Skye Bioscience (NASDAQ:SKYE) Posts Quarterly Earnings Results

Skye Bioscience (NASDAQ:SKYE) posted its earnings results on Friday. The company reported ($0.27) EPS for the quarter, topping 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 Stock Down 7.3%

Shares of NASDAQ SKYE traded down $0.04 during mid-day trading on Friday, hitting $0.50. 1,269,760 shares of the company were exchanged, compared to its average volume of 133,689. The stock has a 50 day simple moving average of $0.65 and a 200-day simple moving average of $0.74. Skye Bioscience has a 1-year low of $0.28 and a 1-year high of $4.99. The firm has a market cap of $17.62 million, a price-to-earnings ratio of -0.35 and a beta of 2.97.

Analyst Ratings Changes

Separately, Weiss Ratings reissued a “sell (d-)” rating on shares of Skye Bioscience in a report on Friday, July 10th. Two investment 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’s stock. According to data from MarketBeat, the company presently has an average rating of “Hold” and a consensus target price of $8.00.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in SKYE. Vanguard Group Inc. boosted its holdings in Skye Bioscience by 5.3% in the 3rd quarter. Vanguard Group Inc. now owns 882,785 shares of the company’s stock valued at $3,469,000 after purchasing an additional 44,824 shares in the last quarter. Marshall Wace LLP purchased a new position in shares of Skye Bioscience during the 2nd quarter worth approximately $436,000. Two Sigma Investments LP lifted its holdings in shares of 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 buying an additional 29,163 shares during the period. XTX Topco Ltd acquired a new stake in shares of Skye Bioscience in the 4th quarter valued at approximately $40,000. Finally, Qube Research & Technologies Ltd purchased a new stake in shares of Skye Bioscience in the second quarter valued at approximately $218,000. 21.09% of the stock is 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.