Don't Sleep on Skye Bioscience—This Weight Loss Drug Could Soar

Skye Bioscience (NASDAQ: SKYE) is a micro-cap pharmaceutical company that is striving to become the next big thing in the weight loss drug space. The massive success of glucagon-like peptide-1 (GLP-1) agonist drugs sold by Eli Lilly (NYSE: LLY) and Novo Nordisk has prompted Wall Street analysts to place high expectations on Skye Bioscience.

Currently, Skye's average price target sits at over $18 per share. With shares trading at under $4 right now, this target implies that Skye's shares could rise north of 350%. I'll dive into the specifics of the medicine Skye is working on, as well as the obstacles between the company and reaching these lofty expectations.

Nimacimab: A Better Weight Loss Treatment?

Skye isn't working on a GLP-1 agonist drug. Its main drug is nimacimab, which acts as a peripheral cannabinoid receptor 1 (CB1) inhibitor. The drug is currently in Phase 2 of Food and Drug Administration (FDA) trials.

Reading through Skye's documents, I identified three main potential benefits of its drug. First, it works through a distinct mechanism compared to GLP-1 agonists. This means that it could be used in combination with GLP-1s to possibly enhance weight loss or simply offer an alternative to these drugs.

Second, and one reason why someone might choose a CB1 drug for weight loss is the potential for the drug not to come ...