Cantor analyst Elemer Piros weighs in with a few insight on Zynerba Pharmaceuticals Inc (NASDAQ:ZYNE), after the drug maker reported second-quarter results and reiterated its timeline for two August Phase 2 readouts from Zynerba’s 188- patient STAR 1 study of ZYN0002 in adult epilepsy and 320-patient STOP study in adult osteoarthritis.

Piros noted, “We saw no surprises during the quarter and believe investor focus will remain on Zynerba’s first upcoming Phase 2 readout in adult epilepsy. Based on prior studies of adjunctive anti-epileptic therapies, we believe a successful readout might demonstrate an approximate 20% greater reduction in seizure frequency from baseline when compared with placebo. In our view, positive data in epilepsy could significantly increase our confidence in the program, currently at 25% probability of success.”

“While we do not currently model the osteoarthritis program, we believe a successful readout could add additional upside to our estimates,” the analyst added.

As such, Piros reiterates an Overweight rating on Zynerba Pharmaceuticals shares, with a price target of $28, which implies an upside of 87% from current levels. (To watch Piros’ track record, click here)

Overall, 7 analysts rated Zynerba shares a Buy in the past 3 months. With a return potential of 107%, the stock’s consensus target price stands at $30.86.