US FDA Ruling on CBD Could be a Big Catalyst for Zynerba

02:12 04/14/2019

The U.S. FDA could be a substantial catalyst for CBD in May 2019.

In fact, the government agency plans to hold a meeting on May 31, 2019 to explore issue around products that contain cannabis and CBD.

“The public hearing will give stakeholders an opportunity to provide the FDA with additional input relevant to the agency's regulatory strategy related to existing products, as well as the lawful pathways by which appropriate products containing cannabis or cannabis-derived compounds can be marketed, and how we can make these legal pathways more predictable and efficient,” Gottlieb said Tuesday in a statement. “We hope to gain additional information and data for the FDA to consider with respect to products containing cannabis and cannabis-derived compounds, including CBD.”

One of the many companies that could benefit from a decision in Zynerba Pharmaceuticals ZYNE .

Zynerba Pharmaceuticals (ZYNE) has been one of the most explosive small-cap stocks of the year. After starting January 2019 at $3, it’s already rocketed to $8.80 a share.

And to be honest, there may be further upside ahead thanks to the cannabis story.

Just recently, the U.S. FDA announced it would hold its first public hearings on CBD, as it weighs allowing companies to add CBD to food products. The hearing is expected to take place on May 31, 2019, and could serve as a big catalyst for ZYNE.

“We believe the removal of current CBD-containing foods, lotions, snacks, oils and other embodiments containing CBD favors the market adoption of Zynerba’s Zygel,” note analysts at Ladenburg. We have long expected the availability of OTC CBD products during Zygel’s marketing (assuming positive pivotal data in Fragile X patients in 2H’19 and approval in 2H’20), but the stance of the agency suggests less availability of CBD-containing products for which consumers to choose from”

The analysts also reiterated their buy rating on the stock with a price target of $26 a share – a potential 315% move from where the stock currently trades.

This article has been provided by a Chasing Markets contributor. All content submitted by this author represent their personal opinions, and should be considered as such for entertainment purpose only. All opinions expressed are those of the writer, and may not necessarily represent fact, opinions, or bias of Chasing Markets.
Most Read