Zynerba Pharmaceuticals (NASDAQ: ZYNE) announced 5/29/2019, initiation of phase 2 INSIPRE trial for its lead product ZYGEL. ZYGEL is a trans-dermal CBD gel. The ZYGEL trial is looking at efficacy of patients with defects of chromosome 22 ( 22q11.2 ).
22q11.2 deletion is an inherited pediatric condition with wide range of symptoms. Symptoms include emotional and mild behavioral issues to physical, psychological, and even heart and immune system problems.
According to Zynerba, top-line data results for INSPIRE are expected next year. Although I like ZYNE’s long term prospects, this pattern tends to repeat itself quite frequently, especially with volatility in broader markets during this time. Furthermore, with phase 2 just initiated it will likely be a couple months before the next data read, leaving more reason for investors and traders to go elsewhere. Not only do charts indicate further downside but I believe this will cause more sellers than buyers in coming months.
- Currently sitting at .382 retracement.
- Pullback to .50 retracement is ~$9.54 bringing puts in the money
- Looking for test of .5 retracement by end of month
- Technical’s indicate potential AB=BC harmonic retracement/ pullback.
I/ We own puts in ZYNE. This is not recommendation to buy or sell. Please be sure to do your DD before investing.