Zynerba Pharmaceuticals Inc (NASDAQ: ZYNE) is having an overwhelmingly rough start to the trading session in the pre-market hours this morning, and for good reason. The company announced that a key clinical trial has proven to be a failure. Of course, this struck fear in the hearts of investors, leading to massive declines and prompting our partners at Trade Ideas to alert us to the movement. Currently (8:18), ZYNE is trading at $6.97 per share after a loss of $8.09 per share (53.72%) thus far today.
ZYNE Falls On Failed Clinical Trial
As mentioned above, Zynerba Pharmaceuticals is having a rough day in the market today after releasing top-line results from a failed clinical trial. The trial was a double-blind, placebo-controlled, Phase 2 trial, known as STAR 1. During the trial, ZYNE assessed ZYN002, synthetic transdermal cannabidiol, for the treatment of epilepsy. Unfortunately, the company said that ZYN002 did not demonstrate a statistically significant reduction of focal seizures during the treatment period compared to the baseline period for both high and low dose cohorts when compared to the placebo. In a statement, Armando Anido, Chairman and CEO at ZYN, had the following to offer:
“We are very disappointed that the STAR 1 trial did not meet its primary endpoint in this patient population… We are continuing to evaluate this study and the ongoing STAR 2 open label study to demonstrate next steps with ZYN002 in adult epilepsy patients with focal seizures. I’d like to thank the patients, coordinators and investigators, as well as the development team at Zynerba, for their time and energies in conducting this very important trial.
Importantly, today’s results demonstrated ZYN002 to have a very favorable safety and tolerability profile, which is an encouraging fact as we look to develop ZYN002 as a treatment for a wide range of indications. We are excited that we will present top-line data from our ZYN002 STOP trial in osteoarthritis soon, followed by top-line data from our FAB-C study in Fragile X syndrome by the end of September.”
Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!
What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on ZYNE. In particular, we’re interested in following the other ongoing studies surrounding ZYN002, as the treatment was created for a wide range of indications. We’ll continue to follow the story closely and bring the news to you as it breaks!
Never Miss The News Again
Do you want real-time, actionable news delivered to your inbox? Join the CNA Finance mailing list below!