Zynerba Pharmaceuticals R&D Expenses For Q1 Reach $7.1M, Here Are The Details

Zynerba Pharmaceuticals, Inc. ZYNE released financial results for the first quarter ended March 31, 2023, revealing research and development expenses were $7.1 million for the first quarter of 2023, including stock-based compensation of $400,000.

General and administrative expenses were $3.4 million in the first quarter of 2023, including stock-based compensation expense of $400,000.

Net loss for the first quarter of 2023 was $10.1 million, with basic and diluted loss per share of $(0.21).

“The first quarter of 2023 was a period of continued focus and execution on our two lead programs with Zygel,” stated Armando Anido, chairman and CEO of Zynerba. “During the quarter we continued to enroll patients in our confirmatory pivotal phase 3 RECONNECT trial as we are committed to bringing the first pharmaceutical product indicated for the treatment of behavioral symptoms of Fragile X syndrome to market. In addition, we expect continued dialogue with the U.S. Food and Drug Administration in 2023 regarding an acceptable trial design for our phase 3 program in patients with 22q deletion syndrome, with the goal of finalizing a trial design by the end of 2023.”

Corporate – Reverse Stock Split

Zynerba intends to seek approval of a reverse stock split at its annual meeting of stockholders in June, which it would effect any time prior to November 1, 2023. Details of the reverse stock split are included in the company’s Proxy Statement for the Annual Meeting. The primary objective of implementing a reverse split is to satisfy the minimum bid price requirement for continued listing on the Nasdaq Capital Market.

The company’s board believes that effecting the reverse split would increase the price of its common stock which would, among other things, help the company to:

• • Meet certain continued listing requirements of the Nasdaq Capital Market;

  • Appeal to a broader range of investors to generate interest in the company; and

  • Improve perception of the company’s common stock as an investment security.

Financial Outlook

As of March 31, 2023, cash and cash equivalents were $44.4 million, compared to $50.6 million as of December 31, 2022.

Management believes that the company’s cash and cash equivalents are sufficient to fund operations and capital requirements to mid-year 2024. Top-line results from the company’s confirmatory pivotal phase 3 RECONNECT trial of Zygel in patients with Fragile X syndrome are expected in the first half of 2024.

Photo by Giorgio Trovato on Unsplash

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