'Trump Schmump': H.C. Wainwright Raises Zynerba's Target To $30

Zynerba Pharmaceuticals Inc ZYNE announced that the read out from its Phase 2 studies for ZYN002, STAR 1 (in epilepsy) and STOP (in osteoarthritis pain), would be available in July or August, with the epilepsy data expected first.

H.C. Wainwright’s Corey Davis maintained a Buy rating on the company, while raising the price target to $30.

Positive Stance

The analyst expressed optimism regarding ZYN002, a cannabinoidal (CBD) in gel form, given that “medical marijuana” has proven its utility in several different settings, and regulators “prefer to have the active compound isolated, regulated, and delivered in a consistent manner, with formal clinical trials as proof of its therapeutic activity.”

Also, Zynerba Pharma has proven that its gel formulation is able to penetrate the skin and enter the blood stream in a consistent manner, with low adverse effects.

Davis also mentioned that GW Pharmaceuticals PLC- ADR GWPH has already demonstrated that CBD works in two separate subsets of epilepsy.

“There is not yet any human data in OA (osteoarthritis) pain, so that study is inherently riskier, but we take the very fast enrollment of 320 patients as a good sign that patients and physicians are having a positive experience,” the analyst stated.

Expectations

The analyst also pointed out that a vast majority of the patients from the STAR 1 study have chosen to participate in the STAR 2 open-label extension study. Such robust enrollment is often an indicator of trial success.

“Zynerba expects to see a reduction in the median seizure frequency per 28-day period vs. baseline of about 40 percent for ZYN002, with placebo expected to be ~20 percent,” Davis reported.

The data from the STOP trial in OA pain is expected soon after the STAR 1 data, with Zynerba Pharma expecting to see at least a one-point greater reduction in the 24-hour average worst pain score for ZYN002, as compared to the placebo.

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