Canaccord Genuity is firm on its stance on Zynerba following CBD gel patient trial
CBD was proven to improve Fragile X Syndrome conditions
Zynerba Pharmaceuticals, Inc. is now increasing in value as they conduct clinical trials of a skin gel containing the main component CBD. This study is being conducted with the goal of treating Fragile X Syndrome. This is a genetic condition that affects cognitive and developmental capabilities. It’s characterized by delays in speech, intellectual disability, as well as behavioral problems in some cases. It’s been found that the CBD gel significantly improved behavioral symptoms among those with the syndrome. This is a major breakthrough as this disease’s symptoms are very difficult to manage and control.
Cannabis’ medical benefits and its legalization
Cannabidiol, better known as CBD, is one of the major components of marijuana. Just like the other component, THC, it boasts of many health benefits. Both are currently being used in the treatment of stress, anxiety, sleeplessness, chronic pain, and other conditions. CBD is generally regarded as superior to THC in terms of overall efficacy as it is not a psychoactive substance. Thus, the side effects are very minimal. It also doesn’t affect behavior or cognition.
Because of the increasing popularity of cannabis and CBD, as well as the ongoing conduct of various scientific research and clinical trials backing their potential medical benefits, more states are leaning towards the federal legalization of cannabis.
Now, investors are seeing great potential in the medical cannabis/CBD industry that wasn’t too evident in the past. Around $57 billion is spent on legal cannabis globally in just a span of a decade. Because of the increasing demand for both recreational and medical marijuana, as well as the trend towards legalization, it’s projected that the numbers could increase up to $23.4 billion in the U.S. alone by the year 2022.
Canaccord Genuity on Zynerba’s CBD Gel
Zygel is currently the first pharmaceutically-produced cannabinoid that’s created as a topical gel. It’s targeted towards patients with Fragile X Syndrome, Autism Spectrum Disorder, and epilepsies. Its unique quality is its ability to permeate through the skin faster than most topical preparations. They were able to formulate a substance that allows the active ingredient to permeate into the skin in less than a minute, allowing for higher bioavailability. This route of administration also spares patients of the potential gastrointestinal side effects like nausea and vomiting.
Because of this breakthrough, Zynerba’s shares (ZYNE) have increased tremendously. Furthermore, their shares have skyrocketed after they win their patent for their CBD gel. An analyst has given Zynerba a buy rating, target $18. They estimate that Zynerba stocks are a great pick for investors who are rather more tolerant of risks. Canaccord Genuity predicts a 50% approval for the newest Fragile X treatment. Just Friday morning, the shares increased by 3.07%. The shift in opinion of many people with regards to CBD has definitely affected its potential to be a good investment opportunity.