Cybin Inc., a pioneering firm in the field of psychedelic-based therapies, is experiencing a significant surge in share prices, following the disclosure of investment from Steve Cohen’s hedge fund, Point72 Asset Management.
In a recent surge, Cybin’s stock leapt by an impressive 39.4% on the US market, closing at US$0.46, while its Toronto-listed shares saw a boost of 36%, amounting to C$0.60.
This uptick came on the back of Point72 acquiring almost 19 million shares, equivalent to an 8.1% stake in the company, as per the regulatory filing on September 14 with the SEC.
Steve Cohen, renowned billionaire investor and owner of the New York Mets, is no stranger to the biotechnology sector, holding significant stakes in numerous other major firms through Point72.
His venture into Cybin, a company fervently exploring the potential benefits of psychedelics in treating conditions such as depression and anxiety, is perceived as a significant endorsement for the burgeoning psychedelics sector.
Notably, this sector has largely been propelled by retail investors until now.
It’s also worth noting that this move isn’t Cohen’s first foray into the psychedelic space. Only three months prior, the philanthropic foundation managed by Cohen and his wife, Alexandra, granted a generous $5 million to the Multidisciplinary Association for Psychedelic Studies (MAPS), taking the foundation’s total contributions to psychedelic endeavours to over $31 million, as per details on its official website.
This fresh investment into Cybin underscores a burgeoning interest in psychedelic research as a viable pathway to develop novel therapies for mental health conditions.
It remains to be seen how Cohen’s significant investment will further spur growth and innovation within the psychedelic sector. Both Cybin and Point72 have yet to comment on this development.