Over the course of the past months, many companies that have been working on treatments or vaccines for the coronavirus have come into sharp focus among investors. Consequently, many of those stocks have recorded significant gains as well and one of the stocks that have emerged as an interesting option is that of BioCryst Pharmaceuticals, Inc. (NASDAQ: BCRX). It is a small-cap company and has developed a coronavirus treatment.
That being said, it should be noted that the product is still in its early stages of development. On the other hand, it is also necessary to point out that the BioCryst stock has not actually made particularly significant gains like many of the other companies which are working on COVID 19 treatments.
Since the start of the year, the stock has managed to record gains of only 19.7% so far and although it is higher than NASDAQ gains of 18.1%, it is far lower than the gains recorded in stocks of companies working on coronavirus related products.
In this sort of situation, it might be time for investors to take a closer look at the company and figure out whether the BioCryst stocks are actually a diamond in the rough which can deliver significant gains in the near term. In order to figure that out, it is necessary for the investors to check out the prospects of BioCryst.
At this point in time, a wide range of COVID 19 treatments are being developed and perhaps the most popular one is remdesivir, which is being developed by Gilead Sciences. On the other hand, BioCryst is working on an antiviral medicine known as galidesivir and in Phase 1 clinical trial it showed positive results.
BioCryst has now started Phase 2 clinical trials in Brazil. It should be noted that galidesivir had originally been developed to treat the Marburg virus but eventually it showed enough promise to tackle other forms of viruses as well. While there may be a lot of promising signs, it should be noted that even if the product does end up getting approval from the regulators, it will almost certainly be competing with many other COVID 19 treatments.
Additionally, it is also necessary to keep in mind that in addition to its coronavirus treatment, the company also boasts of an impressive pipeline of products. For instance, its influenza treatment has already been given the nod by the United States Food and Drug Administration. However, the product has not been able to generate a lot of sales.
The other product that has completed its Phase 3 trial is berotralstat and is on the verge of getting approval. While the company’s COVID 19 treatment is still in its early stages, its other products offer an opportunity. However, it could prove to be a high-risk high reward bet for investors.
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