New Possibilities For Cannabinoid Treatments: Acquisition To Transform Neuropsychiatric Disorder Therapies

Healthcare company Harmony Biosciences Holdings, Inc. HRMY completed its previously announced acquisition of Zynerba Pharmaceuticals, Inc. ZYNE on Wednesday.

What Happened

Harmony's offer to acquire all outstanding shares of Zynerba for $60 million or $1.1059 per share in cash, plus one non-tradeable contingent value right (CVR) per share, representing the right to receive potential additional payments of up to $140 million or approximately $2.5444 in additional cash per share, subject to the achievement of specific clinical, regulatory and sales milestones expired at 5:00 p.m. ET time on Tuesday, October 10, 2023.

Following the acceptance of the tendered shares, Harmony completed the acquisition of Zynerba through the merger of a wholly owned subsidiary of Harmony with and into Zynerba in which each share of Zynerba's common stock was issued and outstanding immediately prior to consummation of the merger.

Why It Matters

Zynerba is a leader in pharmaceutically produced transdermal cannabinoid therapies for orphan neuropsychiatric disorders.

Harmony president and CEO Jeffrey M. Dayno, MD, described its lead candidate, Zygel, as a 'portfolio in a product' with the potential to serve 80,000 U.S. patients who are diagnosed with Fragile X syndrome (FXS) and another 80,000 diagnosed with 22q deletion syndrome (22q).

"Zygel is a significant market opportunity that advances our long-term growth strategy of developing a diversified portfolio beyond sleep/wake therapies," Dayno said. "This acquisition expands our pipeline with a product candidate in our area of expertise that could address high unmet medical needs for people living with rare neuropsychiatric disorders."

See Also: CBD-Based Zygel Helps With Anxiety-Related & Behavioral Symptoms In 22q11.2 Deletion Syndrome, Phase 2 Trial Reveals

What Is Zygel?

Zygel is a pharmaceutically manufactured synthetic cannabidiol (CBD). It is a non-euphoric cannabinoid formulated as a patent-protected permeation-enhanced gel for transdermal delivery through the skin and into the circulatory system.

The product is not extracted from the cannabis plant and does not contain THC. Instead, it is manufactured through a synthetic process in a cGMP facility.

HRMY Price Action

Harmony Biosciences' shares traded 2.40% lower at $31.75 during after-hours on Tuesday.

Photo: Courtesy of Louis Reed on Unsplash