Investors in Edesa Biotech (NASDAQ:EDSA) and EDSA stock are perhaps the only investors grinning today. Amid a bloodbath in the markets, EDSA stock surged to nearly double yesterday’s close at today’s peak. EDSA stock closed out Monday more than 100% higher, on extremely high volume.
This rapid move to the upside is perhaps somewhat expected, given Edesa’s business model. As a clinical-stage biopharmaceutical company, such swings can be much more common that in other sectors, or larger-cap stocks.
That said, this move indicates investors are cheering something big today. Indeed, Edesa has made a big announcement regarding its clinical trials for a drug treating those hospitalized with Covid-19. Let’s dive into what was announced, and why investors are jumping all over this stock today.
EDSA Stock Surging on Positive Clinical Trial Results
Today, Edesa released the preliminary results from its Phase 2 study of a monoclonal antibody candidate. The drug, named EB05, is a single-dose treatment for those hospitalized with Covid-19.
According to the company’s press release, those critically ill with Covid-19 demonstrated a 68.5% lower death rate when treated with EB05 versus the standard of care. These results are extremely encouraging, and the company is pursuing Phase 3 of its trial in short order.
As a result of these impressive figures, EDSA stock has started to gain traction on social media boards. Indeed, EDSA stock currently takes top spot among trending tickers on Stocktwits, and is seeing a tremendous uptick in activity on other forums.
Given the importance of finding therapies to deal with the repercussions of Covid-19 for those who are unvaccinated, or for future variants that are resistant to vaccines, is important. Accordingly, investors appear to be viewing EDSA stock as one of the key winners from the Covid-19 therapeutics market which is gaining a lot of traction right now.
On the date of publication, Chris MacDonald 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.
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