Skye Bioscience (SKYE -8.74%), a biotechnology company developing novel obesity therapeutics, released its second quarter earnings on August 7, 2025. As in prior quarters, no commercial revenue was reported. Research and development expenses (GAAP) increased sharply, leading to a higher net loss (GAAP) and a notable reduction in cash and short-term investments compared to December 31, 2024. The absence of sales is expected for a pre-commercial stage biotech. Compared with prior periods and expectations, the quarter showed continued pipeline progress but significantly increased cash burn and operating losses.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS | $(0.44) | $(0.31) | $(0.20) | (120%) |
| Revenue | $0.0 | $0.0 | $0.0 | – |
| Research and Development Expenses | $14.3 million | $4.1 million | 249 % | |
| General and Administrative Expenses | $3.9 million | $4.3 million | -9.3 % | |
| Cash, Cash Equivalents, and Short-Term Investments | $48.6 million(as of June 30, 2025) | N/A | N/A |
Source: Analyst estimates for the quarter provided by FactSet.
Business Overview and Recent Focus
Skye Bioscience is a pre-commercial biotechnology firm working to develop drug candidates that address unmet needs in metabolic diseases. Its main focus is nimacimab, a novel antibody that modulates the peripheral CB1 receptor, which is thought to help regulate key metabolic functions related to obesity and overweight.
The company's near-term efforts center on advancing nimacimab through clinical trials. The goal is to demonstrate that its approach can either complement or improve upon existing therapies such as GLP-1 receptor agonists—which are currently the standard drugs in this space. Key success factors include progress and results from the clinical program, strong intellectual property, and prudent financial management to maintain sufficient cash runway until potential commercialization or licensing opportunities.
Quarterly Developments: Pipeline, Expenses, and Key Milestones
The most notable story for the quarter is the continued clinical advancement of nimacimab. The company reaffirmed that key data from the CBeyond Phase 2a study are expected between late Q3 and early Q4 2025. The Data Safety Monitoring Committee completed its fourth review of the ongoing trial, raising no concerns and allowing the study to continue as planned. In July 2025, the company began enrolling participants in a 26-week extension study, with approximately 50% of original study participants expected to be eligible for enrollment in the CBeyond Phase 2a extension study as of July 2025. This progress suggests clinical development is moving forward in line with previously communicated timelines.
Preclinical research highlighted the potential of nimacimab in combination with existing therapies, specifically with tirzepatide, a GLP-1/GIP dual agonist drug. Data from preclinical diet-induced obesity (DIO) mouse studies presented in Q2 2025 showed that the combination of nimacimab and tirzepatide outperformed both drugs given alone, with the combination group achieving more pronounced and durable weight loss. Specifically, the combination yielded 44% vehicle-adjusted weight loss, compared to 21.5% for nimacimab alone and 29.7% for suboptimal tirzepatide alone. Additionally, nimacimab demonstrated a potential ability to reduce post-treatment weight regain—a common problem after stopping incretin drugs. These findings point to possible benefits that would need to be validated in human trials, which are still underway.
Research and development spending (GAAP) increased steeply, totaling $14.3 million in Q2 2025 compared to $4.1 million in Q2 2024. This reflects higher costs related to clinical trial execution, manufacturing scale-up, and preclinical work. General and administrative expenses (GAAP) were $3.9 million in Q2 2025 versus $4.3 million in Q2 2024. The company reported a net loss (GAAP) of $17.6 million in Q2 2025, compared to $7.9 million in the prior year's period. Headcount increased to 20, with additions to chemistry, manufacturing, and controls leadership to support ongoing drug development activities.
During the period, Skye Bioscience entered a partnership with Arecor Therapeutics to develop higher-concentration formulations of nimacimab. These activities are aimed at supporting longer-term scalability and potentially making the therapy easier to administer in later clinical stages or if it reaches commercialization. However, there were no new licensing, co-development, or commercial deals reported in the quarter. The company also did not disclose any new patents or changes in its intellectual property portfolio. It continues to rely on patents for nimacimab that are expected to provide protection through at least 2035.
Financial Outlook and What Lies Ahead
Management offered an updated outlook on the company's funding runway. With $48.6 million in cash, cash equivalents, and short-term investments as of June 30, 2025, it anticipates having sufficient capital to support planned operations and key clinical milestones through at least Q1 2027. This projection assumes spending patterns and trial timelines remain largely unchanged.
The company's future now depends on its ability to deliver positive clinical results for nimacimab and continue meeting its development and regulatory milestones. Top-line data from the CBeyond Phase 2a study, expected in late 2025, will be a central focus for both the company and outside observers. Investors and analysts will also monitor Skye Bioscience's management of its remaining cash balance as R&D expenses continue to rise.
SKYE does not currently pay a dividend.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
