There are plenty of companies working tirelessly to help treat the symptoms of the novel coronavirus. AIM ImmunoTech (NYSEMKT:AIM) is setting itself apart as its experimental drug Ampligen is progressing quickly through the various research and development phases. And with a single breakthrough moment, a big move in AIM stock could be just around the corner.
AIM ImmunoTech has long been in the business of developing drugs to treat major debilitating disorders. The company was worthy of investors’ attention even prior to the spread of the novel coronavirus.
But the pandemic changed everything. The world now considers the treatment of Covid-19 symptoms to be a high-need area. With Ampligen in its pipeline, AIM ImmunoTech is on the forefront of this movement. Recent developments highlight AIM ImmunoTech’s progress in this area as well as the company’s solid financial position.
AIM Stock at a Glance
Investors have enjoyed steady gains in AIM stock since the year began. All they had to do was buy the shares in January and hold them, and they could have watched the share price ascend from the 60-cent level to $6.10 in March.
The pop to the $6 level was brief, however. The mania surrounding biotech companies in March contributed to an overinflated stock price. But that doesn’t necessarily mean that AIM shares can’t work their way back to that peak before the end of the year.
The stock-price recovery is actually already in progress, but it’s slow and steady this time around. Investors should be careful when stocks go up quickly. When the gains are too fast, they might not be too sustainable.
FDA Gives Ampligen the All-Clear Signal
It was a big day for AIM stock investors, no doubt. However, it could also be considered a milestone moment for the medical community as well.
Shareholders celebrated when AIM ImmunoTech announced that the U.S. Food and Drug Administration had authorized a human trial to assess Ampligen (the company’s brand name for rintatolimod). This trial will examine Ampligen in combination with an interferon called alfa-2b, in cancer patients who have Covid-19.
Pawel Kalinski, the vice chair for translational research and the Rustum Family Professor for Molecular Therapeutics and Translational Research at Roswell Park, described Ampligen as a “viral mimic.” He believes that in combination with the interferon, Ampligen “could be an effective strategy also against COVID-19.”
Kalinski evidently used the word “also” because Ampligen had already been “applied to achieve modulation of the cancer microenvironment.” He also seems to suggest that this trial represents a shift from virology-based therapies to one focused on immuno-oncology.
A Solid Balance Sheet
That same press release included a nice bonus. In particular, there was an update on AIM ImmunoTech’s fiscal standing.
AIM stockholders will be pleased to learn that CFO Ellen Lintal offered good tidings on the financial front. At the end of March, AIM ImmunoTech held over $31.1 million in cash, cash equivalents and marketable securities.
With such a firm balance sheet, AIM ImmunoTech is in a great position to advance its Covid-19 and oncology programs. Lintal did concede, “As we move forward in the new COVID-19 trials, it is likely we will see a corresponding increase in expenses.” But she added that AIM ImmunoTech is carefully managing the company’s expenses, thereby enabling it to minimize its cash-burn rate.
The Bottom Line
Having a strong balance sheet means, among other things, that AIM ImmunoTech can continue to pursue its pipeline. But that’s only part of the case in favor of AIM stock. The other part is the company’s persistent efforts on behalf of individuals suffering from the terrible effects of the coronavirus.
Louis Navellier had an unconventional start, as a grad student who accidentally built a market-beating stock system — with returns rivaling even Warren Buffett. In his latest feat, Louis discovered the “Master Key” to profiting from the biggest tech revolution of this (or any) generation. Louis Navellier may hold some of the aforementioned securities in one or more of his newsletters.