Zynerba Pharmaceuticals (ZYNE)

Zynerba is a micro-cap biotech company that focuses on developing synthetic cannabinoid drugs to be used for trans-dermal delivery (topical gel). The drugs are intended for refractory epilepsy, osteoarthritis, fragile X syndrome, fibromyalgia and homeopathic pain.

Pipeline:

The company is very deep in the pre-clinical stage, with most of its assets not completing phase II until 2017.

The Stock:

ZYNE does not seem to be investment grade at this moment in time. The stock has fallen from over $30.00 to 8.00 per share within a year. This is unsurprising, the company continues to issue dilutive equity as part of its fundraising and its assets are very far from market.

Look for a nice bump in the stock price at the start of 2017 when these drugs complete 2a. I have confidence in cannabis based treatments, especially for neuropathic and other types of chronic pain, like osteo-arth. The medical efficacy of the treatments seems to be established for this purpose. For the other applications I am not as confident.



