FDA’s intended crackdown on CBD-infused food products is music to Zynerba Pharmaceuticals Inc (NASDAQ
The agency’s announcement to hold its first public hearing on May 31 on CBD as it explores ways to regulate CBD-infused food products was met with excitement from Zynerba’s investors. The results boosted ZTNE’s
Bullish Trend Persists
The stock’s bullish trend has persisted to the previous day’s business day netting a price of $7.40, an impressive 14.20% jump from the day’s opening price and scoring the company a new valuation of $155.52 million.
Michael Higgins, analysts at Ladenburg is of the opinion that the FDA will be launching a crackdown on all non-prescription products in the market including THC and CBD which will, inturn, grow the market adoption of Zynerba’sZygel.
Zygel is the only patented permeation-enhanced CBD gel that delivers treatment through the skin into the circulation system. Unlike most CBD-based drugs, the gel minimizes effects associated with drugs delivery through the digestive system which include psychoactive effects, effects of drug-drug interaction, and the threat of having the drug ingested by the patient’s liver. The gel is fashioned to treat rare neuropsychiatric conditions like fragile syndrome and autism spectrum disorder.
Analysts’ Favorable Ratings
As such, Higgin has recommended a BUY rating on Zynerba’s stock with an optimistic price target of $26. Oren Livnat of the Five-star HC Wainwright has also given the company’s stock a BUY recommendation and a price target of $23. Livnat went on record saying “We reiterate our Buy, rating and see the current $105M market cap ($27M EV) leaving remarkable upside potential on positive data; as our $23 price target still reflects only a 35% probability of success in FXS.”
With inbound regulation framework seemingly favoring Zynerba, the future could only look bright for the innovative biotech company.