For the past two years, the team has been testing SNG001, a preparation containing the antiviral protein interferon beta, for the treatment of viruses. In other experiments, interferon beta has been shown to help improve lung function and recovery.
The therapy has passed the first and second phases of trials. Now, SNG001 has been recommended to enter Phase 3 trials in patients with mild to moderate Covid-19.
This progress is part of a large-scale ACTIV-2 study. It is sponsored by the National Institute of Allergy and Infectious Diseases, which is responsible for running public/private projects, accelerating Covid-19 treatment inventions and vaccines or Activs.
In addition to the plan, the company also Run your own Phase 3 researchAccording to management, the results of this trial will be announced in early 2022.
Actively move forward
In my opinion, this is undoubtedly a positive step forward for the company. Entering the Phase 3 test will only strengthen the existing data of the earlier SNG001 test. Data show that the use of this therapy can substantially improve the condition of patients with severe coronavirus.
Synairgen’s products are based on the principle of delivering SNG001 directly to the lungs. The purpose of this is to help restore or enhance the natural antiviral defense capabilities to prevent the virus from causing serious lower respiratory tract diseases.
If successful, this treatment can not only help the world fight the coronavirus, it may also help defend against other viral threats. It may also play a role in helping patients recover from different diseases. Interferon beta has been used to help MS patients. Research shows that it can also help asthmatics.
Based on these qualities, I think it is unreasonable to assume that this may eventually become an important product of Synairgen. The company must first bring the treatment to the market, which is easier said than done.
Synairgen stock price risk
Although SNG001 is in a phase 3 trial, it is still likely to prove ineffective in a larger trial group. If it does succeed in trials, it may take a while for the product to go to market.
At the same time, the company will have to try to keep the lights on. This may be the most prominent risk facing investors. If it takes longer than expected to bring SNG001 to the market, or if there are complications in the current series of trials, Synairgen may run out of funds.
In this case, it may have to ask shareholders to provide additional cash, which would dilute existing investors. There is no guarantee that it can raise funds, and in the worst case, Synairgen may go bankrupt.
Nevertheless, this is the worst-case scenario. In the best case, SNG001 may become the blockbuster of the group.
Considering these factors and today’s update, I think the company’s prospects are improving. This is why I will buy a speculative position in this stock today.
Rupert Hargreaves has no position in any of the aforementioned shares. The Motley Fool UK has no position in any of the aforementioned stocks. The views expressed by the companies mentioned in this article are those of the author and may therefore differ from the official recommendations we made in subscription services such as Share Advisor, Hidden Winners and Pro. At The Motley Fool, we believe that taking into account a variety of different insights, We are better investors.