Healthcare analysts expressed their opinions on Myokardia Inc (NASDAQ:MYOK) and Zynerba Pharmaceuticals Inc (NASDAQ:ZYNE) after the former released promising clinical data in symptomatic, obstructive hypertrophic cardiomyopathy, while the later reported disappointing clinical results in refractory focal seizure. Both analysts explain how these events and their resulting outcomes will drive each stock forward, changing their price targets in different directions. Let’s tak e a closer look:
Myokardia shares skyrocket over 80% in Monday’s trading session, after the company announced positive topline data from the first patient cohort of its Phase 2 PIONEER-HCM study of mavacamten in symptomatic, obstructive hypertrophic cardiomyopathy (oHCM) patients. This cohort met the primary endpoint of change in post-exercise peak left ventricular outflow tract (LVOT) gradient from baseline to week 12 as well as key secondary endpoints, including peak oxygen consumption (peak VO2).
Birchenough commented, “We believe results were better than expected and should bode well for phase 3 success in the planned EXPLORER study. We believe that unmet need of oHCM and clear clinical benefit on exercise tolerance and NYHA classification should be supportive of breakthrough therapy designation and a significant commercial opportunity ultimately. We believe that lower dose combination with beta blockers could provide additional upside potential and while data is not expected until 1Q18 we believe that potential early evidence of effect at 2 weeks, demonstrated in dose cohort 1, should help inform EXPLORER study design.”
Zynerba Pharmaceuticals Inc
Zynerba shares took the other route today, crashing nearly nearly 60% to $6.37. The reason? The drug maker reported disappointing topline results from its phase II STAR 1 study of ZYN002 in adult epilepsy with focal seizures. The trial failed to meet the primary endpoint (20% median change from baseline) and its secondary endpoints too.
In reaction, Cantor analyst Elemer Piros downgraded Zynerba shares from Buy to Neutral, while slashing the price target to $4.00 (from $28), which implies a downside of 38% from current levels. (To watch Piros’ track record, click here)
Piros commented, “Due to the lack of statistical significance or dose response, we are uncertain over the path forward of ZYN002 in adult focal seizures and have removed it from our model. Moving to the sidelines, our valuation of the company is based on our estimate of year-end cash. We note that we currently do not model programs in osteoarthritis (OA) and fragile X syndrome (FXS), which are expected to have readouts in August and September, respectively.”