Zynerba Pharmaceuticals, Inc. Wows Investors; Here’s Why

It’s a very rewarding trading day for investors in Zynerba Pharmaceuticals Inc (NASDAQ:ZYNE) with shares up over 60%, making the stock Wall Street’s bull of the day. The reason? The cannabis biotech company announced positive top line results from an open label exploratory Phase 2 FAB-C (Fragile X Syndrome Anxiety and Behavioral Challenges with CBD) clinical trial evaluating ZYN002 cannabidiol (CBD) gel in pediatric and adolescent patients with Fragile X syndrome (FXS). The study successfully met its primary endpoint, achieving a 46% improvement (p<0.0001) in the total score of Anxiety, Depression, and Mood Scale (ADAMS) at week twelve compared to baseline. ZYN002 also achieved clinically meaningful improvements in all measures of the Aberrant Behavior Checklist for Fragile X (ABC-FXS), which address the key symptoms of FXS including social avoidance, temper tantrums, repetitive movements, and hyperactivity.

Zynerba CEO Armando Anido commented, “We are thrilled with the positive clinical results of ZYN002 in the FAB-C trial; it is a major step forward for the hundreds of thousands of patients worldwide with Fragile X who currently have no approved therapeutic options to treat their symptoms […] The clinically meaningful improvements in Fragile X symptoms and the excellent tolerability seen in the FAB-C trial are compelling. These data will allow us to discuss the pathway to approval in a meeting with the FDA, which we expect to take place during the first half of 2018. I want to thank the patients, families, physicians, study coordinators, and the Zynerba team for their support of this important study.”

“The symptoms of Fragile X can be overwhelming to a patient and caregiver, so I’m very enthusiastic about the responses to ZYN002 that we saw during this study,” said Honey Heussler, FRACP, Associate Professor at Children’s Health Queensland, Medical Director Child Development and lead investigator in the FAB-C study. “These data are extremely promising, particularly the improvements in anxiety, social avoidance, and irritability as measured by scales including ADAMS, ABC-FXS, and PARS-R. Tolerability is essential in these patients, so I’m very pleased to see that ZYN002 was well tolerated in Fragile X patients.”

On the ratings front, ZYNE stock has been the subject of a number of recent research reports. In a report issued on September 26, Jefferies analyst Eun Yang reiterated a Hold rating on ZYNE, with a price target of $7.00, which represents a potential upside of 13% from where the stock is currently trading. On September 14, Roth Capital’s Michael Higgins assigned a Buy rating to the stock and has a price target of $15.

According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Eun Yang and Michael Higgins have a yearly average return of 7.5% and a loss of 7.6% respectively. Yang has a success rate of 55% and is ranked #428 out of 4669 analysts, while Higgins has a success rate of 41% and is ranked #4473.

Overall, 6 research analysts have assigned a Hold rating and 2 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 $7.00 which is 13.1% above where the stock closed yesterday.

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.


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