Zynerba Pharmaceuticals Inc (NASADAQ:ZYNE) shares sank following an unsuccessful early-stage trial of ZYN001, its cannabinoid skin patch.
ZYN001 is designed to deliver THC through a transdermal patch.
In the placebo-controlled Phase 1 study, a total of 60 volunteers participated in the study with differently formulated patches and varying wear times.
While there were no serious adverse effects detected, the skin patch did not achieve its goal of target THC levels in the blood.
The company, which develops cannabis-based therapies for rare neuropsychiatric disorders, will shift its focus to ZYN002 Fragile X syndrome, a treatment for epilepsy.
Shares of the Pennsylvania-based company fell more than 20% to US$7.64 in Thursday pre-market trading.