Debra BorchardtZynerba Pharmaceuticals Inc. (ZYNE) stock tumbled 10% on Wednesday following a roller coaster ride on the share price after the company reported new clinical data. Zynerba announced that its data from the Phase 2 trial of its STAR 1 drug for epilepsy resulted in a meaningful reduction in seizures.
The 18-month open-label study of the ZYN002 cannabidiol transdermal gel found that patients who received 195 mg dose for six months saw their seizures reduced by 65%. Patients that got a 390 mg dose for three months in the Phase 1 trial and six months in the phase two trial experienced a 48% drop in seizures versus the baseline.
Zynerba Stock’s Volatile Ride
The stock jumped from $13.48 on Monday morning to a high of $15.14 before closing at $13.37. It closed even lower on Tuesday at $13.01 and has slipped to $11.22 on Wednesday. Canaccord Genuity raised its price target on Zynerba to $18.00 from its previous target price of $15 and kept the buy rating. The analyst Arlinda Lee cited the study results as a reason for increasing the price target.
“These new ZYN002 data are the first of their kind, showing that focal seizures in adults may be effectively treated by a transdermal gel delivery of pharmaceutically produced cannabidiol,” said Terri Browning Sebree, Zynerba’s president. “In this population of patients, continued treatment with ZYN002 was shown to significantly reduce seizure rates compared to baseline. Importantly, baseline seizure frequency appears to be an important indicator of response.”
Insys Therapeutics Slides
Insys Therapeutics (INSY) also slipped in trading by 2% to $5.23 even as the company announced that its New Drug Application (NDA) for buprenorphine as a sublingual spray for pain relief had been accepted for filing by the FDA (Food & Drug Administration). According to the company statement, the FDA set July 28 as the date to complete its review. Insys also plans to include data from a seven-day study with 100 patients to augment the NDA package.
“We look forward to working with the FDA in 2018 to add our buprenorphine sublingual spray to the range of treatment options available to physicians whose patients suffer from moderate-to-severe acute pain,” said Steve Sherman, senior vice president of regulatory affairs at INSYS. “We believe that this novel formulation and delivery method of buprenorphine holds great promise as an alternative to traditional opioids.”
Insys has struggled this year to overcome scandals regarding past executives and the company’s founder. The stock has plunged from a 52-week high of $15.02 to a year’s low of $4.10 and was lately trading at $5.23.
In Sympathy With GW?
Traders believe the stocks were sliding in sympathy with GW Pharmaceuticals (GWPH), which was tumbling 6% in trading on Wednesday. The stock had fallen after the company announced that it was offering more shares.
