Zynerba Midstage Cannabinoid Trial Falls Short

By Chris Lange Updated Jan 12, 9:09AM EST · Published Aug 14, 10:10AM EDT

Follow 24/7 Wall St. on Google

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

Zynerba Midstage Cannabinoid Trial Falls Short — © Thinkstock

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.

[nativounit]

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.

[wallst_email_signup]

About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.