This $15 Stock Could Address a Major Medical Need
In the midst of market sell-offs and panic periods, it’s interesting to isolate the small handful of stocks that are bucking the negativity and maintaining a strong upside trading pattern.
This is a quick and easy way to identify which stocks represent the strongest of the strong. Because if a company can remain green in the midst of the most violent market down days, then it’s one of the names that you want to be positioned in going forward!
One such name that I’ve noticed is Zynerba Pharmaceuticals (Nasdaq: ZYNE), which has been displaying an impressive amount of upside strength even on some of the weakest market days.
With a crazy 52-week high-low range of $16.47 to $2.75, Zynerba Pharmaceuticals was a $5 stock in March. And then the news started flowing.
Here’s a quick summary…
Zynerba Pharmaceuticals develops transdermal cannabinoid therapies for rare and near-rare neuropsychiatric disorders. Zygel is the name of the company’s transdermal cannabidiol (CBD) gel.
- It’s in Phase 2 clinical trials for treating children and adolescent patients with developmental and epileptic encephalopathy.
- It’s in Phase 2/3 clinical trials to treat children and adolescent patients with Fragile X syndrome.
- And it’s also in Phase 2 clinical trials for treating children and adolescent patients with autism spectrum disorder.
Fragile X syndrome is a genetic condition that causes learning disabilities and cognitive impairment – causing delayed development of speech and language as early as age 2.
The primary trigger for the upside run of Zynerba Pharmaceuticals stock was that the company just received fast track designation by the FDA for Zygel in treating behavioral symptoms of Fragile X syndrome.
As you can see from the chart, this FDA fast track program has been a really positive trigger catalyst. That’s because it’s designed to facilitate the development of drugs intended to treat serious conditions and fill unmet medical needs.
An expedited FDA review process can save a company millions in research and development costs – and get these new and essential drugs into the hands of patients sooner. This is a big deal for a small, growing company like Zynerba Pharmaceuticals.
Action Plan: For a time line, Zynerba expects to report data in the second half of 2019. If these results are positive, Zynerba could file for FDA approval of Zygel in the first half of 2020. This name has all the makings for a speculative stock buy on any pullbacks, and we’ll be keeping our eye on it in The War Room.