Zynerba Pharmaceuticals Inc. (NASDAQ: ZYNE) saw its shares sink to a 52-week low after the firm announced results from its midstage trial evaluating ZYN002 (cannabidiol [CBD] gel) for the treatment of knee pain due to osteoarthritis. Unfortunately, the study did not meet its primary endpoint of reduction from baseline in the weekly mean of the 24-hour average worst pain score at week 12 for either dose.

Statistically significant results were achieved for a number of secondary endpoints. Importantly, the composite responder analysis (defined as a greater than or equal to 30% reduction in worst average daily pain scores and a greater than or equal to 20% improvement in the WOMAC physical function score) for 250 mg daily of ZYN002 4.2% CBD gel achieved statistical significance.

Keep in mind that ZYN002 is based on cannabinoids, which are a class of chemical compounds found in marijuana. Clinical and preclinical data support the potential for CBD in treating epilepsy, arthritis and fragile X syndrome, and THC has positive effects on treating pain.

Daniel Clauw, M.D., Professor of Pain Management and Anesthesiology at the University of Michigan, and director of the Chronic Pain and Fatigue Research Center, commented:

Many osteoarthritis patients using currently available medicines do not experience relief from pain and improved physical functioning, or cannot tolerate them due to side effects. The STOP trial results are encouraging and suggest that ZYN002 can play an important role in impacting the pain and impaired physical function associated with osteoarthritis, with a well-tolerated safety profile. I am particularly impressed with the composite analysis result which accounts for both pain and physical function. I believe that ZYN002 may provide a promising treatment option for OA, and I look forward to participating in future studies.

Excluding Monday’s move, Zynerba has underperformed the broad markets with the stock down 55% year to date. Over the past 52 weeks, the stock is down close to 30%.

Shares of Zynerba were last seen down over 20% at $5.56, with a consensus analyst price target of $14.00 and a 52-week range of $5.42 to $25.95.

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