Zynerba Pharmaceuticals (ZYNE) Stock Gains On Cannabidiol News

Zynerba Pharmaceuticals ZYNE Stock News

Zynerba Pharmaceuticals Inc (NASDAQ: ZYNE) is up more than 12% in mid-day trading today after announcing news with regard to a cannibinoid treatment. According to a press release, the company was awarded a new patent. Here’s what’s happening:

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ZYNE Stock Gains On Cannabidiol Patent

In the press release issued this morning, Zynerba Pharmaceuticals announced that it was issued a new patent. The US Patent and Trademark Office issued a patent titled, “Treatment of Autism Spectrum Disorder with Cannabidiol.”

The patent, number 10,314,792, covers claims directed to methods of treating autism spectrum disorder through the administration of a therapeutically effective amount of synthetic cannabidiol.

Why This Patent Is Important

ZYNE has been working hard to protect its cannabidiol product candidate, Zygel, also known as ZYN002 transdermal CBD gel. In recent months, we have seen strong expansion of the company’s IP protection surrounding the treatment.

In February, the company announced the issuance of patent number 10,213,390. This patent covers methods of treating Fragile X Syndrome through the administration of a therapeutically effective dose of synthetic or purified cannabidiol.

Ultimately, this expanding patent protection will help the company to ward off competitors for years to come. In fact, the patent announced today will not expire until the year 2038, offering up about two decades of market exclusivity.

Perfect Timing

The patent announcement was made with perfect timing. In fact, it gave ZYNE an open door to remind investors of progress with regard to the development of Zygel for the treatment of Autism Spectrum Disorder.

In fact, in March, Zynerba Pharmaceuticals announced the initiation of an open label Phase 2 study. Through the study, dubbed the BRIGHT study, the company is evaluating the safety, tolerability and efficacy of Zygel as a treatment for children and adolescents with Autism Spectrum Disorder.

Through the study, ZYNE will assess efficacy based on the Aberrant Behavior Checklist, Parent Rated Anxiety Scale – Autism Spectrum Disorder, Autism Impact Measure, and Clinical Global Impression – Severity and Improvement.

While top-line data isn’t expected until the first quarter of 2020, the study may lead to multiple catalysts before then. After all, interim data readouts, if positive, could lead to strong runs in value for the stock.

The timing of the announcement is also perfect for another reason. As CBD proves to grab the attention of the masses, those who get the patents today will reap the rewards tomorrow. with the patent news, Zynerba is showing that it plans on protecting its CBD discoveries as the market emerges and for years to come.

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Final Thoughts

Ever since the Charlotte’s Web Documentary aired on CNN, there has been an active discussion that is growing surrounding the treatment of pediatric medical conditions with cannabis and its derivatives. The documentary showed that cannabis can be effective in the treatment of epillepsy, likely helping to lay the ground work for Epidiolex, the first cannabis-derived treatment for epillepsy, to be approved.

Today, just a few short years after the documentary aired, several biotechnology companies are exploring the potential of cannabis as a treatment for rare and common pediatric conditions alike. With strong clinical to date, those that are innovating and building intellectual property protection this early in the game have the potential to be the giants of the future. I believe that ZYNE represents one of these opportunities!

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