Many companies have come together in order to work on treatments for COVID 19 and many of these have seen their stocks soar due to the sheer potential of the market. One such company is CytoDyn Inc (OTCMKTS:CYDY) and earlier this week, the company made a major announcement with regards to its coronavirus treatment leronlimab.
That set off an impressive rally in the stock and it gained as much as 7%. In light of such developments, it would be remiss if investors did not take a closer look at the stock and the company’s operations.
Another Positive News
On Tuesday, the company announced that in a Phase 2 trial of its product leronlimab managed to improve the conditions of patients who were suffering from a mile to moderate symptoms of COVID 19. According to the announcement, patients who were treated with leronlimab showed a 90% improvement in their condition. On the other hand, those who had been treated with placebo could only show a 71% improvement in their condition.
The study conducted by the company had made use of the National Early Warning Score (NEWS) in order to identify patients who might be at risk of contacting COVID 19. The patients who had been enrolled in the Phase 2 study had twice the chance of being infected with COVID 19.
Scott Kelly, the Chief Medical Officer of CytoDyn, stated that the management is ‘thrilled’ with the results from the study. In the coming days, the company is going to report the results to the United States Food and Drug Administration, the European Union Medicines Agency, and the United Kingdom Medicines & Healthcare products Regulatory Agency. It is a product that could eventually end up having a lot of importance considering the fact that there is significant demand for therapy for patients who demonstrate rapid signs of deterioration.
The excitement around the CytoDyn stock is hence understandable. However, on Wednesday, the fortunes of the CytoDyn stock took a hit after it published the top-line data from the Phase II study of leronlimab. The market was not impressed with the results of the study and the stock promptly fell by as much as 13.5%.
That being said, it should be noted that the CytoDyn stock has generated gains to the tune of 316% so far this year. Hence, it might not be wise to write off the stock just yet, and instead, investors could keep a track of the latest developments.
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