Investors continue to dump shares of Zynerba Pharmaceuticals Inc (NASDAQ:ZYNE) after the drug maker reported initial data from its Phase 2 study with ZYN002 in refractory focal seizure. Unfortunately, ZYN002 did not demonstrate a statistically significant reduction in median seizure frequency from baseline. While there was a dose proportional increase in the availability of the drug in the plasma, this increase did not relate to a clinically meaningful benefit.
Zynerba shares reacted to the news, collapsing nearly 60% in Monday’s trading session.
“We are very disappointed that the STAR 1 trial did not meet its primary endpoint in this patient population,” said Armando Anido, Chairman and Chief Executive Officer of Zynerba. “We are continuing to evaluate this study and the ongoing STAR 2 open label study to determine next steps with ZYN002 in adult epilepsy patients with focal seizures. I’d like to thank the patients, coordinators and investigators, as well as the development team at Zynerba, for their time and energies in conducting this very important trial.”
Cantor analyst Elemer Piros commented, “Based on these data, we are uncertain whether there remains a suitable path forward for development in adult focal seizures. While we do not model OA and FXS, we await additional data expected in August and September, respectively. Following STAR 1 data, we are reevaluating our model and remind investors that YE cash balance for Zynerba is approximately $56 million.” (To watch Piros’ track record, click here)
Overall, 7 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $32.00 which is 388% above where the stock opened today.
Zynerba Pharmaceuticals, Inc. engages in the research and development of drugs. Its clinical programs include synthetic cannabinoid therapeutics and patch and gel for transdermal delivery. The company was founded by Audra L. Stinchcomb on January 31, 2007 and is headquartered in Devon, PA.