Canaccord Genuity (TSX:CF, LSE:CF) said it continued to believe that Zynerba Pharmaceuticals (NASDAQ:ZYNE) is undervalued after the company reported its fourth-quarter financial results that showed a $67.8 million cash runway to advance its flagship Zygel CBD Gel for Fragile X Syndrome.
“We continue to believe that Zynerba, at its enterprise value of around $20 million, remains undervalued as it is pursuing high-risk/high-reward indications where the unmet need is high,” Canaccord analysts wrote in a note.
Earlier, the European Medicines Agency (EMA) granted Zygel orphan drug designation in Fragile X Syndrome, and Canaccord noted that Zynerba could utilize its ongoing program in FXS to pursue approval in Europe.
READ: Zynerba ends 4Q flush with $67.8M cash runway to advance its flagship Zygel CBD Gel for Fragile X Syndrome
“While we do not expect Zynerba to take on ex-US marketing activities by itself, we note this EMA-related development could help in terms of partnership interest and/or non-dilutive financing avenues at some point,” analysts wrote.
The research firm added that clinical timelines remain on track for Zynerba’s open-label INSPIRE Phase 2 data for 22q deletion syndrome, which is expected in mid-2022.
Canaccord reiterated its 'Buy' rating on Zynerba’s stock and a $9 price target.
Zynerba’s shares are currently changing hands at around $2.01 on the Nasdaq.
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