This Biotech Stock Is Surging Over Potential COVID-19 Drug

Regeneron is speeding up the development of a therapy against COVID-19. Investors welcomed the news by bidding up company stock.
Posted in: Business
Published:
March 18, 2020 1:33 PM UTC
  • A biotech giant is speeding up the development of a therapy against COVID-19.
  • The drug can act as a vaccine and also treat infected patients.
  • Investors have welcomed the news by pushing the company’s stock up in after hours trading.

A potential SARS-CoV-2 (coronavirus) vaccine is coming sooner than expected. Biotech titan Regeneron (NASDAQ: REGN) now seeks to deploy a unique approach against COVID-19. The therapy can act as a vaccine to prevent infection and also treat infected patients. Investors have responded by rushing to buy the company’s stock.

Regeneron’s Stock Up Big After Announcement of Accelerated Timeline

The announcement of the new treatment has sent REGN skyrocketing. Shares of the pharmaceutical company are up nearly 12% in after hours trading after hitting its 52-week high Tuesday. The stock is posting gains despite the overall negative sentiment in the market.

Regeneron said it plans to have a potential treatment for COVID-19 ready for human clinical trials as early as June. Investors welcomed the news as the company previously said it will conduct human testing in late summer. The update represents a two-month acceleration from the expected timeline.

Regeneron accelerating the timeline for a drug that can prevent and cure COVID-19. | Source: Twitter

In a CNBC interview, Regeneron’s co-founder and chief scientific officer said,

There are always so many moving parts, but … we’re hitting our best numbers, our best timelines, and things are going really well.

REGN May Continue to Spike as CEO Says Covid-19 Drug Can Be Available ‘Fairly Quickly’

The biotech giant is developing the therapy by experimenting on genetically-engineered mice that have immune systems comparable to humans. The mice get infected with a piece of the SARS-CoV-2 virus and they will create human antibodies that can be mass produced and given to human patients.

Regeneron claims it has already isolated hundreds of antibodies that combat the virus on top of isolating antibodies from patients who have recovered from COVID-19. This approach allows the pharmaceutical company to come up with the best treatment.

In an interview with Barron’s, Regeneron CEO Leonard Schleifer says that the development of the drug can go “quickly”:

A drug like this could really slow down the number of people who needed really intensive respiratory therapy. This could go fairly quickly. There are unfortunately a lot of people in the hospital. If we can enroll the study quickly over the next month, you should know within a few weeks of treating people how they’re doing.

CNBC News anchor Clark Quintilla reported that Schleifer guaranteed the drug will be affordable.

The drug will not bankrupt COVID-19 patients. | Source: Twitter

The above should not be considered trading advice from CCN.com. The writer does not own Regeneron (REGN) shares.

Sam Bourgi edited this article for CCN.com. If you see a breach of our Code of Ethics or Rights and Duties of the Editor or find a factual, spelling, or grammar error, please contact us.

Last modified: June 24, 2020 1:05 AM UTC

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Kiril Nikolaev @kirilnikk123

Kiril is a CFA Charterholder and financial professional with 6+ years of experience in financial writing, analysis and product ownership. He has a bachelor's degree with a specialty in finance and lives in Canada. Kiril’s current focus is on finance and cryptocurrencies. He also has his personal website, InvestorAcademy.org where he teaches people about the basics of investing. He owns Bitcoin, Ethereum, and other cryptocurrencies. He holds investment positions in the coins but does not engage in short-term or day-trading. kirilnikk123@gmail.com