Zynerba Pharmaceuticals company shares are down by more than 57% after a clinical trial of their synthetic cannabidiol (CBD) gel failed. The failed trial may have been the sign everybody needed to sell, as the company has had a turbulent year, rising to a high of over $25 to this week’s lows just over $6. Their hopes were riding on the successful trial of their trans-dermal CBD gel called ZYN002. Many are now speculating that this may in fact be a win for Zynerba’s competitor, medical marijuana producer GW Pharmaceuticals.
GW Pharmaceuticals has been authorized by the FDA to clinically test their own CBD based epilepsy treatment Epidiolex. GW’s cannabis based medicine Sativex, used to relieve the symptoms of multiple sclerosis, is already being used legally in more than 29 countries around the world. According to their website, Epidiolex is “for certain rare and severe early-onset, drug resistant epilepsy syndromes.” More specifically, Epidiolex helps with the symptoms associated with Dravet Syndrome and Lennox-Gastaut Syndrome. Cannabidiol is known to reduce the amount of seizures a patient experiences per day, as well as alleviate much of the pain and muscle spasms that accompany them.
GW is currently up 300% from its low in March of 2016, holding just under 120 per share. The stock has seen its share of ups and downs over the past year and is down from its high of over 130 per share. The recent pull back combined with the news of Zynerba’s failed trial makes it an opportune time to invest, as GW should be a long term hold in your portfolio.
Cory Hughes is a former police officer turned cannabis cultivator and writer. After years of being on the wrong side of the law, Cory decided to hang up his badge and gun and move into an industry that truly has the potential of bringing people together. He has been an active part of the Colorado cannabis culture and has worked as a horticulturist in dozens of licensed grow operations. Cory now looks to share his knowledge of cultivation and horticulture with the world.