August 12, 2015
The initial public offering of Devon-based Zynerba Pharmaceuticals wrapped up well, with gross proceeds of $48.3 million after underwriters agreed to purchase 450,000 more shares.
The company is developing medical synthetic cannabinoids, which are man-made drugs that mimic the effects of marijuana to help treat painful diseases like fibromyalgia.
As the Philadelphia Business Journal reported, the company sold 3.45 million shares. Stock prices climbed from $14 on Aug. 5 to $35.14 on Monday before falling slightly to $29.73 on Tuesday.
Related story: Drug company that mimics marijuana for pain relief goes public
One of the reasons for the stock boost for the seven-employee company is that it has added several high-profile, experienced executives to its board of directors. It announced six new board members on Thursday, Aug. 6, including:
• Warren Cooper, a former Merck executive and former CEO of Prism Pharmaceuticals
• Daniel Kisner, CEO of Caliper Technologies
• Cynthia Rask, a former acting director for the U.S. Food and Drug Administration
"With such a broad range of expertise, we are confident that the board will strategically guide the company as we rapidly approach clinical development," said Zynerba CEO Armando Anido.
Board members Philip Wagenhiem and Steve Gailar stepped down to make room for the new appointments.
Zynerba's leading drug candidates under development are ZYN002, a gel product that could be used to treat refractory epilepsy, Fragile X syndrome and osteoarthritis, and ZYN001, a patch that shows potential to help patients with fibromyalgia and peripheral neuropathic pain.
