One of my favorite things about being a financial writer is that I have the opportunity to present lesser-known but compelling investments to the public. As I see it, Zynerba Pharmaceuticals (NASDAQ:ZYNE) stock is one of those hidden gems that most people simply arenâ€™t aware of, but ought to be. Timing could also be right, as short-sellers have driven ZYNE stock down almost 6% in the last week.
Itâ€™s also an entry point into eternally buzz-worthy cannabis stocks, and you might call it â€śinvesting with a conscienceâ€ť as a with position in ZYNE stock, you could be supporting a company with the potential to make peopleâ€™s lives better â€” a nice added bonus for those of us who prefer to live and invest in a better world.
Itâ€™s important to â€śknow what you ownâ€ť â€” as I always like to say â€” so first things first: letâ€™s understand what this little cannabis companyâ€™s all about. Zynerba describes its mission as â€śto develop next-generation transdermally delivered cannabinoid therapeuticsâ€ť with the objective of addressing â€śsignificant unmet medical needs and improve the lives of patients with rare and near-rare neuropsychiatric conditions.â€ť
These conditions might hit home for you and your family, as they include autism, epilepsy, and a somewhat rare neuropsychiatric condition known as Fragile X syndrome. Whereas the idea of combating the symptoms of these conditions with cannabis-based solutions was unthinkable when I was young, itâ€™s now just a matter of time before these solutions come to light and in some cases, FDA approval is the only thing standing in the way.
While Zynerba has a number of products in its clinical pipeline, the companyâ€™s flagship product candidate, Zygel, is by far the best-known of the potential medical game changers. Itâ€™s described by the company, as â€śthe first and only pharmaceutically produced CBD â€¦ formulated as a patent-protected permeation-enhanced gel for transdermal delivery through the skin and into the circulatory systemâ€ť and is intended to alleviate some of the symptoms associated with Fragile X syndrome (which can cause cognitive impairment and/or learning disabilities), pediatric autism, and some forms of epilepsy.
Itâ€™s seldom that youâ€™ll find a fast-moving timeline when it comes to FDA approval, but many Zynerba stock investors have been pleasantly surprised with the progress that Zygel has been making through the regulatory process. Patients and ZYNE shareholders alike were undoubtedly pleased when Zynerbaâ€™s chairman and CEO, Armando Anido, announced in May that Phase 2 trials were under way for Zygel as a treatment for autism spectrum disorder:
â€śWe are excited to initiate the BRIGHT trial evaluating the role of Zygel in ASD and are hopeful that Zygel may improve some of the core social and behavioral symptoms of ASD. We look forward to presenting topline data in the first half of 2020.â€ť
This was also the time when the company had selected Zygel as the name of its ZYN002 CBD-based transdermal gel, which remains the companyâ€™s most important potential product. But that was only the beginning of the journey: by May, the FDA had granted the highly coveted fast-track designation to Zygel for the treatment of Fragile X syndrome, which has been cited as a known form of attention deficit disorder as well as inherited learning disabilities.
As you might expect, the market celebrated that day and sent the ZYNE stock price northward to the tune of 9.5%. Not only were they celebrating the fast-track designation, but also Zynerbaâ€™s statement that data on Zygel trials was to be â€śexpected in the second half of 2019.â€ť
â€ś[T]he results from this open-label trial indicate that ZYN002 may be an effective treatment for many behavioral and emotional symptoms associated with FXS although the studyâ€™s findings are limited by the open label design and small sample size.â€ť
Clearly thereâ€™s a need for further testing, but the preliminary results are heartening and ought to provide some hope for patients who may be amenable to CBD-based treatment.
In this analysis of Zynerba and ZYNE stock, I deliberately spent less time focusing on price charts and analyst expectations. Instead, I wanted to paint a picture of a company thatâ€™s truly making a difference in the medical community; by investing in Zynerba stock, youâ€™re making a bold statement in favor of the future of CBD as a vehicle of profits, sure, but also as a source of hope for patients worldwide.
As of this writing, David Moadel did not hold a position in any of the aforementioned securities.