Zynerba product development and financial update
Zynerba Pharmaceuticals Inc (NASDAQ:ZYNE) has released its financial results for the 4Q2016 and FY2016. The company noted that it made significant progress with its drug development programs, during the previous year, particularly ZYNE’s lead drug-candidate, ZYN002 CBD gel. Zynerba noted that they successfully initiated the phase-2 trials for epilepsy, Fragile X syndrome and osteoarthritis, during the FY2016. Armando Anido, the CEO of ZYNE, claimed that they have several key milestones, to achieve, over the next few months. He further revealed that this includes positive results from the clinical trials of ZYN002, while a clinical trial was to be initiated for ZYN001.
The company’s financial statements for the 4Q2016, revealed that ZYNE has a cash position of $31 million, down by $10.5 million, from the preceding year. Added to this, R&D expenses for the 4Q2016 stood at $4.9 million, while general, sales and administrative expenses stood at $1.8 million. As such, Zynerba recorded a net loss of $6.9 million, for the 4Q2016. However, during the 1Q2017, the company is reported to have improved its balance sheet, after having raised $58 million in gross proceeds. This was done by selling 3.22 million shares of ZYNE’s common stock, at $18 per share. The company plans to use part of the proceeds for product development and clinical trials.
Providing an update for the FY2017, Zynerba noted that its current cash position was sufficient to carry out a total of five phase-3 ready programs. However, once FDA approval, for a phase 3 program is received, funds would be redirected to that particular program. As such, the company remains confident that it can fund its operations, up until the start of FY2019. In addition to this, ZYNE has also strengthened its management team, with the addition of Brian Rosenberger, as VP and Marcel Bonn-Miller, as the director of cannabinoid research. The appointments were made in January 2017 and December 2016, respectively.