Pennsylvania based Zynerba Pharmaceuticals (ZYNE) had a major boost on Tuesday after its synthetic CBD product meant for the treatment of autism spectrum disorders received a patent.
There is no doubt that it is a significant development for the company as the stock surged by as much as 16.50% to close at $13.50 on Tuesday. For a biotechnology company like Zynerba, a patent of this sort is quite important, since at the end of the day CBD oils are easily available to consumers. Now that they have the patent, it will be easier for the company to ensure that none of its competitors are able to come up with a similar product.
Zynerba has been on a good run for quite some time and there have been talks of positive developments in the company. In addition to its latest patent, the firm also received a United States patent for synthetic CBD product that is used for the treatment of Fragile X Syndrome. The two patents definitely give Zynerba the company the intellectual property rights clout that all businesses crave for and hence, the movement in the stock did not come as a big surprise to many.
Back in April, the company’s stock had been upgraded by Roth Capital on the back of the prospects of its lead candidate Zygel, which is a CBD gel. Following the upgrade from Roth Capital, Zygel was awarded fast track status by the United States Food and Drug Administration.
Going forward, the company’s biggest task will be to conduct clinical tests of Zygel and eventually bring in to the market. Zynerba has already started enrolling patients for the second phase of the clinical study and it is believed that the data from the tests will be published in 2020. Moreover, the FDA is looking to limit the number of companies engaged in biotech CBD product and if that happens, then it could only prove to be beneficial for Zynerba, since it will shrink the competition considerably.
ZYNE’s stock is one of the biggest cannabis stock gainers with a jump of 260% so far in 2019. The stock made a new 52-week high of $16.47 in mid-May.