Auris Medical Holdings (NASDAQ:EARS) is having an incredible day, with shares up more than 400% in intraday trading. Why? It turns out the little-known company has positive early data from its trials for a novel coronavirus treatment. So what do investors need to know about EARS stock here?
To start, what is Auris Medical Holdings? Well, the clinical-stage biotech company focuses on neurotology, rhinology, allergy and central nervous system disorders. What a mouthful! And for those less familiar with medical terminology, neurotology is a specialty within head and neck surgeries.
What about this tiny company has EARS stock up 450% today? With that question in mind, here are 11 things you need to know:
- Auris Medical typically flies under the radar. This is unsurprising, given that its market capitalization is just $37 million.
- The company focuses currently on clinical-stage treatments.
- In its pipeline, it has made the most progress with its drug Sonsuvi, which it is preparing for Phase 3 trials.
- Sonsuvi is currently under investigation for its role in treating sudden deafness.
- However, a different catalyst is sending EARS stock to the moon today.
- Auris Medical has been studying AM-301, a drug-free nasal spray that it believes can protect against airborne allergens and pathogens.
- Today, the company shared some positive efficacy data from an in vitro test.
- This means that the data come from studies of cell or tissue cultures, as opposed to tests on an entire animal or human.
- On that note, Auris Medical is studying AM-301 to see if it can prevent the novel coronavirus from infecting nasal cells.
- According to the company, these cells are the first line of defense against an airborne pathogen.
- Importantly, early studies show that AM-301 reduced the presence of the virus in exposed nasal cells by as much as 90%.
What AM-301 Means for EARS Stock
Clearly, the fact that Auris Medical thinks it can help fight Covid-19 is powering EARS stock higher. Now that the company has some data on the drug-free nasal spray, it is going to push forward with trials. In fact, CEO Thomas Meyer said Auris could seek regulatory approval as early as 2021.
So what else do investors need to know here? Importantly, the nasal spray is not a cure, and it does not offer perfect protection. Plus, Wall Street largely expects the U.S. Food and Drug Administration to grant approval to vaccine candidates from Pfizer (NYSE:PFE) and Moderna (NASDAQ:MRNA). Why then would a nasal spray matter?
Well, we are watching the world grapple right now with an accelerating second wave of the virus. Hospitals are once again filling up, and new cases continue to rise. Plus, vaccine makers will not have enough doses ready to vaccinate the United States, much less the entire world, by the end of 2020. This means that broadly, there is still an appeal in other treatments. If Auris Medical can deliver, and if it can provide individuals another protective measure, EARS stock could benefit.
With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.
Read More: Penny Stocks — How to Profit Without Getting Scammed
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer for InvestorPlace.com.
