Why Did Skye Bioscience Stock Plummet A Whopping 60% Today?

Shares of Skye Bioscience, Inc. (SKYE) dived 60% in the pre-market session on Monday after the company said that its Nimacimab alone did not cause weight loss as compared to placebo in a mid-stage trial.

Preliminary analysis suggested that 200 mg of Nimacimab as a subcutaneous weekly dose was suboptimal as a monotherapy, the company said. The data, however, support the evaluation of higher dosing, the company said.

Further, Nimacimab in combination with Novo Nordisk’s Semaglutide demonstrated a clinically meaningful magnitude of weight loss compared to Semaglutide alone, the company said. The positive observation supports further studies where Nimacimab is used with other therapies, it added.

The drug alone and in combination demonstrated a clean safety profile, with no added gastrointestinal adverse events and no increases in neuropsychiatric adverse events reported resulting from treatment with Nimacimab, Skye said. Overall, the study, which enrolled 136 adults with overweight or obesity, had a discontinuation rate of 27%. Notably, 3.7% of the discontinuations were due to adverse events, with the placebo group contributing 60% of these discontinuations, according to the company.

“With our preclinical data, toxicology safety margins, and PK modeling, we believe we have a path to support higher dosing, and we are evaluating the next stage of development to optimize dosing in potential future clinical trials," said Puneet Arora, Chief Medical Officer of Skye Bioscience. The company is now evaluating the data to determine the next steps for the development of the drug.

SKYE stock is up 68% this year and by about 24% over the past 12 months. 

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