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Friday, June 28, 2019

Canaccord Genuity Bullish On Zynerba Ahead Of CBD Gel Trial Data

Investors continue to show interest in the medical possibilities of cannabis-derived cannabidiol, or CBD, eagerly watching Zynerba Pharmaceuticals Inc ZYNE 6.14% as it begins patient trials on a CBD-infused skin gel aimed at treating Fragile X syndrome.
Canaccord Genuity reiterated a bullish stance on the stock Thursday after meeting with Zynerba CEO Armando Anido.

The Analyst

Sumant Kulkarni reiterated a Buy rating on Zynerba with an $18 price target.

The Thesis

“We believe the stock presents a significant opportunity for risk-tolerant investors,” Kulkarni said in the note. (See his track record here.)
The 14-week trial for the Fragile X transdermal skin gel, Zygel, is on track for a data readout in the second half of 2019, the analyst said.
If the results show some success, Zynerba hopes to gain approval in 2021.
Canaccord Genuity is modeling a 50% probability of approval for the FXS treatment.
The company is also expecting open-label data on the use of the drug for developmental and epileptic encephalopathies in the third quarter of 2019, but the trial for Fragile X treatment is the bigger inflection point, Kulkarni said.

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