Zeroing In On Zynerba Pharmaceuticals


  • Today, we revisit small biopharma Zynerba Pharmaceuticals for the first time in just over a year.
  • The company plans to launch a key trial before the end of the year targeting Fragile X Syndrome and has seen some more positive analyst commentary recently.
  • We peek back in on Zynerba Pharmaceuticals in the paragraphs below.

We are going to peek back in on small biopharma Zynerba Pharmaceuticals (NASDAQ:ZYNE) since we posted an article on it to begin 2020. At the time, we recommended the shares were no more than a small ‘watch item’ and preferably only through establishing a holding via covered call orders.

The world has obviously changed a lot over the past year. Has the situation changed for Zynerba? I have gotten a few questions on this small cap name in recent months from followers here on Seeking Alpha, so we will examine that question in the paragraphs that follow.

Company Overview:

Zynerba is a small ‘Tier 4‘ developmental concern based just outside of Philadelphia. The company’s current developmental efforts are centered around Zygel, the first and only pharmaceutically-produced CBD formulated permeation-enhanced gel for transdermal delivery through the skin and into the circulatory system. The stock trades just north of $3.50 a share and the company has not rewarded longtime shareholders to this point (see above). The current market cap of the company is approximately $100 million.

Recent Developments:

Source: Company Presentation

Zynerba is targeting several indications with Zygel. The company suffered a significant setback in early summer as on June 30th it reported unsuccessful results from Phase 2/3 trial evaluating Zygel in children and adolescents with FXS. The company met with the FDA late in 2020 and is currently designing a new pivotal trial that will be a ‘double-blind, placebo-controlled trial in patients with FXS who have a highly methylated FMR1 gene to confirm the positive results observed in this population of responders in the CONNECT-FX trial‘. The company plans to meet again with the government agency before the first half of this year around the design of this new study and plans to launch this key trial before

Analyst’s Disclosure: I/we have no positions in any stocks mentioned, but may initiate a long position in ZYNE over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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