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Zynerba Pharmaceuticals Rises Due to Patent News

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Zynerba Pharmaceuticals

Zynerba Pharmaceuticals (ZYNE) has risen 18.6% as of 10:40 AM EST on June 11. The stock has been among the top-performing stocks this year. The stock has year-to-date gains of more than 300% based on the closing prices on June 10. Zynerba Pharmaceuticals’ price action has been supported by positive news about a patent. The company announced that it has received a patent in the US for “Treatment of Autism Spectrum Disorder with Cannabidiol.” According to Zynerba Pharmaceuticals, “This new patent, which expires in 2038, is part of an expanding intellectual property portfolio covering the Company’s cannabidiol (CBD) product candidate, Zygel.” Zygel received a fast track designation from the FDA last month.

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Zynerba Pharmaceuticals expects to report revenues starting the first half of 2020. Being a clinical stage company, Zynerba Pharmaceuticals isn’t expected to post any revenues this year. However, analysts expect the company to post revenues of $4.3 million next year and $63 million in 2021. Zynerba Pharmaceuticals is expected to post a net profit in 2021. GW Pharmaceuticals also produces cannabis-derived prescription medicines. The company released its first-quarter earnings last month. GW Pharmaceuticals reported a 13-fold year-over-year rise in revenues. The company’s net loss narrowed from $69 million in the first quarter of 2018 to $50 million in the first quarter.

Zynerba Pharmaceuticals has received a mean consensus target price of $21.75. The stock has received a “buy” or higher recommendation from five analysts. One analyst polled by Thomson Reuters recommended a “hold.”

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