H.C. Wainwright analyst Corey Davis is out today with a research note on shares of Zynerba Pharmaceuticals Inc (NASDAQ:ZYNE), after the company reported its second-quarter results and outlined its ambitious clinical development strategy for its pipeline today. Davis reiterates a Buy rating on ZYNE, with a $30 price target, which represents a potential upside of 106% from where the stock is currently trading. (To watch Davis’ track record, click here)
The analyst opined, “Though some had previously expected data from the Phase 2 STAR 1 trial of ZYN002 in adult epilepsy patients to read out by the end of July, Zynerba assured the market in its Q2 earnings press release this morning that data are still on the way, and we would expect it to hit this week or next. We remain confident that the trial has a reasonable chance of meeting its primary endpoint of median reduction in seizure frequency over a 28-day period compared to baseline, but believe it is worth stressing that even if ZYN002 does not outperform placebo by the ~20% delta needed to hit stat. sig., the number of patients who achieve seizure-free status (a secondary endpoint) could be just as, if not more, important.”
“Assuming pricing and reimbursement are aligned, we believe most patients would be willing to give ZYN002 a try for even a 5-10% chance at being 100% seizure free, if side effects continue to be benign, particularly when success with current treatments is often limited,” the analyst added.
In the past 3 months, 7 analysts rated Zynerba Pharmaceuticals stock a Buy. With a return potential of 108%, the stock’s consensus target price stands at $30.86.