In a note to clients on August 20, Canaccord Genuity (TSX:CF, LSE:CF) analysts reiterated their ‘Buy’ rating and $9 target price on shares of Zynerba Pharmaceuticals (NASDAQ:ZYNE) Inc, saying “ZYNE stock presents a potentially significant opportunity for patient and risk-tolerant investors.”
Zynerba announced recently that it reached an agreement with the US Food and Drug Administration (FDA) on a path forward for Zygel (synthetic transdermal cannabidiol gel) in Fragile X syndrome (FXS).
“We continue to believe ZYNE presents significant scarcity value if it is able to successfully execute on its plans for Zygel,” the analysts wrote.
READ: Zynerba Pharmaceuticals flush with $85.8M in 2Q to fund pivotal trials of its flagship Zygel CBD gel
“This is especially because Jazz Pharmaceuticals bought (cannabinoid-drug maker) GW Pharmaceuticals (GWPH) for about $7 billion and GWPH's Epidiloex (CBD solution) is approved for some pediatric epilepsies,” they added.
Shares of Zynerba gained more than 5% to $3.95 in midday trading on Monday.
The Canaccord analysts noted that although ZYNE's initial CONNECT-FX trial did not hit statistical significance for the full patient set, data on its Phase 3 RECONNECT trial will be key. The company said initiating RECONNECT in 3Q 2021 is a top priority.
RECONNECT is a randomized, double-blind, placebo-controlled, efficacy and safety study of Zygel in children and adolescents with Fragile X syndrome aimed at confirming the positive results observed in the population of responders in the previous CONNECT-FX trial.
The analysts added they are also awaiting updates on the company’s other indications.
Zynerba, meanwhile, said it has enough capital to fund its operations well into the first half of 2024.
Contact Sean at sean@proactiveinvestors.com