Zelda Therapeutics Share Price Stagnant Despite Announcing New Trial

Zelda Therapeutics Ltd’s [ASX:ZLD] share price is yet to move despite announcing its new autism observation trial.

The Australian-based bio-pharmaceutical company is focused on developing cannabis-based treatments for a variety of medical conditions, including insomnia, autism, breast, brain and pancreatic cancer.

Details of the new trial

The autism observation trial will be conducted at the Children’s Hospital of Philadelphia (CHOP).

The aim of the trial is to ‘better understand the efficacy of medicinal cannabis treatment and will work closely with patient advocacy groups’. With the ultimate goal to uncover cannabinoid-based compounds that may demonstrate efficacy in the treatment of paediatric autism.

This observation study will lay the groundwork for a potential follow up clinical trial to generate higher quality data to validate the anecdotal data amongst patients.

Dr Richard Hopkins, Managing Director of Zelda, said:

We are very excited to have this study underway and to be working alongside CHOP to conduct one of the first formal, robust studies of its type in the world. With studies showing that around 1 in 100 people have autism and with diagnosis rates on the rise, we’re focussed on addressing a major unmet need for potential new therapies to help treat this condition.

Is Zelda worth investing in?

Shares of Zelda have been experiencing a downwards trend in the past six months — falling more than 45% since April. They are among the many competitors also formulating medicinal cannabis-based treatments.

You could say it doesn’t look good for them.

Although, while they haven’t found any groundbreaking discoveries as of yet, that’s not to say they won’t. Zelda’s share price is cheap, so you could consider it a bargain not to miss.

I’d suggest keeping an eye on this stock for upcoming progress on both their human clinical trials and pre-clinical research programmes, as Mr Hopkins said there is huge potential for a current unmet need.

Regards,

Matt Hibbard,
For Money Morning

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Matt Hibbard is Money Morning’s income specialist. With nearly three decades in the markets, Matt has traded just about every asset class there is. The one thing that has stuck with him over this time is a very simple premise. That is, it’s the cash a company generates that ultimately determines its value. Sure, some stocks might fly away to multi-digit gains. But unless these companies can convert the ‘story’ into real money, the market will eventually find them out. And when that happens, the share price quickly falls back to Earth. That’s why, over at Total Income, Matt is on the hunt for the next generation of dividend-payers. Stocks that should be able to pay their shareholders reliable and rising dividends into the future. Matt is also the editor of Options Trader, where he shows subscribers how to use basic options strategies to generate income. This is income they can generate on top of regular dividend payments. Matt doesn’t play the prediction game, where the aim is to be proven ‘right’. Instead, his goal is to generate as much income as he can for his subscribers, irrespective of whether the market is going up or down.


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