Zynerba Pharmaceuticals Inc. (NASDAQ: ZYNE) shares were crushed early on Thursday after the company reported topline results from an early stage clinical study. Specifically, the firm announced results from a Phase 1 clinical program studying ZYN001, the company’s patent-protected, pro-drug of tetrahydrocannabinol (THC) delivered via a transdermal patch, in healthy volunteers.
The program assessed the safety and pharmacokinetics in single and multiple doses of several formulations of ZYN001.
The top-line results of this Phase 1 study indicated that target blood levels of 5 to 15 ng/ml THC were not achieved. ZYN001 was very well tolerated with minimal skin erythema. There were no serious adverse events or discontinuations for subjects receiving ZYN001.
As a result of these data, the company will focus its development efforts and investments on the ZYN002 Fragile X syndrome, developmental and epileptic encephalopathy and adult refractory epilepsy programs.
Zynerba expects that this change will extend its cash runway into the second half of 2019. As of March 31, 2018, the firm had $52.1 million in cash and cash equivalents.
Shares of Zynerba traded early Thursday at $8.11, down more than 15% on the day, with a consensus analyst price target of $17.50 and a 52-week range of $5.42 to $20.00.