Will Synairgen shares keep soaring on new Covid-19 treatment?
Synairgen shares are up 30% on Friday following positive trial data, with its new Covid-19 drug containing a protein that reduces the odds of developing severe symptoms and accelerates recovery.
- Synairgen shares soar 30% on new Covid-19 treatment
- The Southampton-based biotech company’s drug accelerates patients Covid-19 recovery
- Synairgen stock is up 2150% year-to-date.
Shares in Synairgen are rallying sharply in today’s trade following positive trial data, with its new drug, known as SNG001, containing a protein that reduces the odds of developing severe symptoms of Covid-19.
The small scale trial results were published in the peer-reviewed Lancet journal, showing positive results in hospitalised patients.
Synairgen shares are up 30% to 130p at the time of publication, with the stock up 2150% year-to-date.
Synairgen’s new drug could accelerate Covid-19 recovery
The Southampton-based biotech company developed a naturally produced protein which helps the body fight viral infections. Synairgen, which was spun out of Southampton University said the drug ‘may have the potential as an inhaled drug to restore the lung's immune response and accelerate recovery from Covid-19’
‘The results confirm our belief that interferon beta, a widely known drug approved for use in its injectable form for other indications, may have the potential as an inhaled drug to restore the lung’s immune response and accelerate recovery from COVID-19,’ Professor Tom Wilkinson, Professor of Respiratory Medicine at the University of Southampton and Lead Author, said.
‘This pH neutral, inhaled interferon beta-1a formulation (SNG001) provides high, local concentrations of the immune protein which boosts lung defences rather than targeting specific viral mechanisms,’ he said.
‘This might carry additional advantages of treating COVID19 when it occurs alongside infection by another respiratory virus such as influenza or Respiratory Syncytial Virus that may well be encountered in the winter months,’ Wilkinson added.
Synairgen: technical analysis
Taking a look at the chart of Synairgen, the stock is down 50% from the summer peak, according to Victoria Scholar, presenter and market analyst at IG.
‘The stock was under pressure earlier this week on the back of Pfizer’s vaccine hopes,’ she said. ‘But today shares are bouncing back, with a gap higher combined with a buy signal from the RSI.’
‘Nonetheless, the stock still remains some way below its descending trendline that’s been in place since October,’ Scholar added. ‘Having broken back up above the 38.2% Fibonacci level, it is now on track to test the 50% fib level at 165.77.
Aaran Fronda | Financial writer, London |