Canaccord Genuity Bullish On Zynerba Ahead Of CBD Gel Trial Data

Investors continue to show interest in the medical possibilities of cannabis-derived cannabidiol, or CBD, eagerly watching Zynerba Pharmaceuticals Inc (NASDAQ: ZYNE) as it begins patient trials on a CBD-infused skin gel aimed at treating Fragile X syndrome.

Canaccord Genuity reiterated a bullish stance on the stock Thursday after meeting with Zynerba CEO Armando Anido. 

The Analyst

Sumant Kulkarni reiterated a Buy rating on Zynerba with an $18 price target.

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The Thesis

“We believe the stock presents a significant opportunity for risk-tolerant investors,” Kulkarni said in the note. (See his track record here.) 

The 14-week trial for the Fragile X transdermal skin gel, Zygel, is on track for a data readout in the second half of 2019, the analyst said. 

If the results show some success, Zynerba hopes to gain approval in 2021.

Canaccord Genuity is modeling a 50% probability of approval for the FXS treatment.

The company is also expecting open-label data on the use of the drug for developmental and epileptic encephalopathies in the third quarter of 2019, but the trial for Fragile X treatment is the bigger inflection point, Kulkarni said. 

Price Action

Zynerba shares were up 3.07% on Friday morning to $13.30.

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Photo courtesy of Zynerba.