Skye Bioscience (NASDAQ:SKYE) Posts Earnings Results, Beats Expectations By $0.02 EPS

Skye Bioscience (NASDAQ:SKYE) issued its quarterly earnings data on Friday. The company reported ($0.27) EPS for the quarter, beating the consensus estimate 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 Price Performance

SKYE traded down $0.04 during mid-day trading on Friday, hitting $0.50. The stock had a trading volume of 1,256,227 shares, compared to its average volume of 345,957. Skye Bioscience has a 1-year low of $0.28 and a 1-year high of $4.99. The firm has a market capitalization of $17.57 million, a price-to-earnings ratio of -0.35 and a beta of 2.97. The stock’s fifty day simple moving average is $0.66 and its 200-day simple moving average is $0.74.

Hedge Funds Weigh In On Skye Bioscience

Several institutional investors have recently modified their holdings of the business. Vanguard Group Inc. raised its stake in Skye Bioscience by 5.3% in 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. Two Sigma Investments LP boosted its position in Skye Bioscience by 46.2% during the third quarter. Two Sigma Investments LP now owns 92,318 shares of the company’s stock worth $363,000 after purchasing an additional 29,163 shares during the period. Dimensional Fund Advisors LP acquired a new stake in Skye Bioscience during the third quarter worth approximately $53,000. Qube Research & Technologies Ltd bought a new stake in shares of Skye Bioscience during the second quarter worth approximately $218,000. Finally, Marshall Wace LLP bought a new stake in shares of Skye Bioscience during the second quarter worth approximately $436,000. Institutional investors own 21.09% of the company’s stock.

Analyst Ratings Changes

Separately, Weiss Ratings reissued a “sell (d-)” rating on shares of Skye Bioscience in a research report on Friday, July 10th. One investment analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, Skye Bioscience currently has a consensus rating of “Moderate Buy” and an average price target of $8.00.

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.