ZYNE stock continued to gain momentum in Friday’s session and was recently moving up by 10.36% to $8.53 USD, extending its winning streak for the fourth straight session. Shares of Zynerba Pharmaceuticals (NASDAQ:ZYNE) are up over 55% since April 2nd, 2019, as the FDA has started looking into how it might legalize CBD-laced food products.
Earlier this week, the agency announced it will hold its first public hearings on CBD on May 31st.
Zygel Drives ZYNE Stock
The FDA approving cannabis-laced food products is a step in the right direction, expected to validate Zynerba Pharmaceuticals’ flagship product, Zygel. The company is positioning Zygel as a novel treatment for children and adolescents struggling with Fragile X syndrome.
As it stands, it is illegal for kids below the age of 18 to consume cannabis-infused products without consent. The only time that kids can use such products is when they are prescribed for medicinal purposes.
If the FDA approves infusing cannabis into food products, Zynerba Pharmaceuticals will have an easier time targeting a broader market, especially in the treatment of adolescents struggling with Fragile X syndrome.
Ladenburg’s Analyst Turns Bullish on ZYNE Stock
Michael Higgins, an analyst at Ladenburg, believes that FDA approving CBD-laced food products would go a long way in strengthening ZYNE stock in the sector.
“This would support the market adoption of Zynerba Zygel, a CBD gel treatment for children and adolescents with Fragile X syndrome, the most common form of inherited learning disability and attention deficit disorder,” Higgins in a statement.
Higgins has since initiated coverage of ZYNE stock with a buy rating. The analyst remains confident that the stock will make a run for the $26 share mark given the opportunity at stake with the legalization of CBD laced food products.
Zynerba Pharmaceuticals has what it takes to do this. ZYNE has been on an impressive run after reporting impressive financials that indicated a period of strong clinical and corporate momentum in 2018.
The company achieved significant milestones last year, in particular with the development of Zygel for the treatment of Fragile X syndrome. With ZYNE stock currently trending upwards, traders should keep this one on the radar.
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