Budding Opportunity: One Analyst Is Modeling For Zynerba Shares To Double Over The Next Year

Cantor Fitzgerald’s Elemer Piros noted that Zynerba Pharmaceuticals Inc ZYNE will have three ongoing Phase II programs by the end of the year for its lead candidate ZYN002, a transdermal synthetic cannabidiol (CBD), with results expected in the first half of 2017, which could provide a “major inflection point” for the shares.

Piros initiated coverage for the company with an Overweight rating and price target of $28.

Significant Differentiator

;ldquo;We believe success in the refractory epilepsy program is strongly supported by recent oral CBD data in orphan pediatric epilepsies achieved by GW Pharmaceuticals PLC- ADR GWPH,” the analyst mentioned.

In addition, the delivery of ZYN002 through the skin, thereby avoiding first pass metabolism by the liver, could prove to be a significant advantage for the product candidate, while minimizing safety risks.

“Avoiding the gut, ZYN002 also avoids unwanted interactions, including the potential conversion of CBD into THC,” Piros explained.

ZYN002 demonstrated strong tolerability in the initial Phase I studies, with limited side effects to the gut, which is a known adverse effect of oral CBD.

Large Market

“The market for refractory focal seizures is large and underserved, with approximately one-third of patients unable to achieve seizure freedom. We estimate ZYN002 could achieve peak sales over $2 billion across U.S. and EU markets,” the analyst went on to say.

Apart from focal epilepsy, Zynerba Pharma also has two more Phase II studies in osteoarthritis and Fragile X syndrome (FXS), the data for which is also expected in the first half of 2017.