In a statement issued Monday, the cannabis biotech company Zynerba Pharmaceuticals, Inc. (NASDAQ:ZYNE) reported a fourth-quarter loss of “$8.1 million with basic and diluted net loss per share of $.60.” In the previous two years, the company “delivered a $32 million loss for 2017 versus a $23 million loss for 2016”.
Research Costs, Results May Pay
Continuous losses like this may raise eyebrows for potential investors. However, this is normal for biotech companies due to product research and development phases. Zynerba is no exception.
The company began its statement outlining its commitment to “developing and commercializing innovative pharmaceutically-produced transdermal cannabinoid treatments for rare and near-rare neurological and psychiatric disorders with high unmet medical needs.”
Currently, the company is in research and developmental phases with two products, so the majority of their resources are allocated to these areas which are exactly why this type of financial loss is common.
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