While Monday’s markets were mostly in the red, a couple of biotech stocks were making triple-digit moves over the course of the day. The best-performing of which was Veru (NASDAQ: VERU), a small-cap cancer biotech that announced its long-planned Covid-19 treatment, sabizabulin, performed exceptionally well in a phase 3 trial.
The company reported that the drug showed statistically meaningful results when it came to reducing the mortality rate of severe hospitalized Covid-19 patients, which was the primary endpoint for the trial. Patients given a 9 mg dose were compared to a placebo group, with 150 high-risk patients being tested.
According to the results, the placebo group showed a 45% mortality rate, whereas the sabizabulin group was down to just 20%. What’s more, the drug appeared to be remarkably well tolerated with few safety concerns also.
An independent committee even recommended halting the trial early due to the overwhelming evidence showing the drug’s effectiveness, and it seemed that the effectiveness of the drug was regardless of the Covid-19 variant type tested.
Going forward, Veru plans to seek emergency use authorization from the FDA. Back in January, the drug had already received a fast track designation from the agency as well.
“What makes these findings more relevant is that the pharmacological activity of sabizabulin is independent of COVID-19 variant type,” said chief science officer of Very, Gary Barnette. “Pending upcoming discussion with FDA, this treatment option may be made available soon so we can be ready for when the next clinically important wave of COVID infections comes.”
Shares of Veru more than tripled on Monday, gaining over 200% as over 340 million shares exchanged hands. It was the single best day for biotech’s history, and most analysts are quite optimistic about its chances. Other candidates the company has includes a phase 3 breast cancer drug and a phase 3 prostate cancer drug, both of which appear to be quite promising.
As it turns out, Very wasn’t the only biotech to see massive, meme-stock like gains. Hoth Therapeutics (NASDAQ: HOTH) also doubled after releasing its own clinical results. The company showed that its new drug, HT-KIT, has been effective in clearing tumor cells in mice, although it was still a pre-clinical trial with relatively limited sample size. In theory, the drug targets the same KIT pathways used by human cancer cells.
The news could help offset what’s been a tough time for some companies in areas like China, which have faced heavy lockdowns once again. Investors are mindful of the chances of further outbreaks here in the U.S., and what fresh lockdowns would mean for the economy.
Veru Company Profile
Veru Inc is a biopharmaceutical company focused on urology and oncology. It develops prescription products for benign prostatic hyperplasia hot flashes associated with cancer treatment, male infertility, and novel chemotherapies for a variety of cancers. The company currently operates in two reporting segments: Sexual health business and Research & development. Some of its products include Zuclomiphene, Veru-111, Veru-100, FC2, and Roman Swipes. The company generates the majority of its revenue from the United States. – Warrior Trading News
