There are a couple of ways that market participants can approach clinical-stage biopharmaceutical firm Atossa Therapeutics (NASDAQ:ATOS). They can try to trade ATOS stock for quick gains or they can buy and hold the shares.
Admittedly, the stock has moon-shot potential, as Reddit users have been known to target low-priced stocks. That possibility should interest short-term traders.
On the other hand, long-term investors will definitely want to consider the bigger picture. Specifically, they should try to determine if Atossa’s efforts to develop breakthrough medicine are progressing.
Thankfully, it does appear that the company is on the right track – and a key regulatory decision involving a Covid-19 treatment should encourage all of Atossa’s stakeholders.
A Closer Look at ATOS Stock
It’s not difficult to find evidence indicating that Atossa’s reputation as a short-squeeze target is well-deserved.
The shares’ price action practically speaks for itself. ATOS stock ran from $1.52 in April to a 52-week high of $9.80 in June, during a time when the meme-stock phenomenon was in full effect.
In all likelihood, meme-stock mania contributed to that incredible run-up. And the unwinding of the short squeeze may have brought the share price down afterwards.
Yesterday ATOS stock closed at $5.62.. It’s certainly possible, though, that the meme-sters might target Atossa and run the share price up again.
That’s something which short-term traders should be prepared for.
At the same time, longer-term investors should keep up with upcoming developments involving Atossa – and one event in particular should definitely grab their attention.
An Important Clinical Issue
Atossa Therapeutics mainly focuses on two diseases: breast cancer and Covid-19.
The company is making strides in both indications.
For instance, not long ago, Atossa received approval from the Swedish Medical Product Agency to initiate a Phase 2 clinical study of the company’s oral Endoxifen drug for the reduction of mammographic breast density.
This condition is an alarming public health issue that affects more than 10 million women in the U.S., plus many more worldwide.
Atossa Chairman and CEO Steven Quay declared, “This is a critical milestone in the development of our oral Endoxifen,” and I agree 100%.
Quay added that two plants would manufacture Endoxifen for clinical and potential future commercial use.
Plus, the company has initiated a significant portion of the preclinical studies needed to support a New Drug Application (NDA) with the FDA for Endoxifen.
Investors and the medical community should pay more attention to breast cancer and to Atossa’s progress towards developing a treatment for it.
However, the world is currently focused on Covid-19. Consequently, Atossa’s proposed Covid-19 treatment, AT-H201, tends to get the lion’s share of the Street’s attention.
In It for the Long Haul
So let’s perform a checkup and see how AT-H201 is progressing.
Some other drugmakers are focused on preventing the spread of the coronavirus. That’s fine, but Atossa’s Covid-19 treatment takes a different angle.
In particular, it targets the millions of underserved people who have already contracted the virus.
And as it turns out, Atossa has been granted regulatory approval from Australia’s Human Research Ethics Committee to launch a clinical study of AT-H201 in that country.
The company reports that AT-H201, delivered via a nebulizer, is being developed as an inhalation therapy for moderately to severely ill, hospitalized Covid-19 patients.
It’s also designed to treat long-haul Covid-19 patients with post-infection pulmonary disease.
Along with relieving symptoms, AT-H201 offers hope for patients who would prefer not to have an extended hospital stays.
“The portability of nebulizers, already routinely used for other chronic lung disease, allows for treatment at home,” Quay explained.
The Bottom Line
Without a doubt, Atossa’s clinical work is significant and timely.
We can see the inroads that Atossa is making in addressing breast cancer and Covid-19. It’s impossible not to root for the company, yet some folks are bearish on ATOS stock.
The skeptics are entitled to their opinions. Personally, I think that Atossa’s shares are attractive for short-term traders and the long-haulers, too.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.