We’ve gotten to witness some interesting market trends throughout 2021 as the vaccine rush has unfolded, bringing with it a vaccine boom for investors. While coverage has often centered around the larger players such as Pfizer (NYSE:PFE) and Moderna (NASDAQ:MRNA), smaller companies have carved out names for themselves throughout the global market. Novavax (NASDAQ:NVAX) made headlines earlier this season after securing a manufacturing partnership with Japan’s government. Today saw a company with a similar trading symbol enjoy some gains of its own. NRx Pharmaceuticals (NASDAQ:NRXP) reported a positive development regarding its own Covid-19 treatment and NRXP stock is reacting well.
What Happened With NRXP Stock
This morning began with NRx announcing that it was a step closer to breaking ground on the commercial sale of its Covid-19 treatment ZYESAMI following the submission of a revised Investigational New Drug module to the U.S. Food and Drug Administration. The news also confirmed that Nephron Pharmaceuticals will be able to supply the drug on a commercial scale when it garners full FDA approval.
Shares of NRXP stock quickly began to rise following this release and they haven’t stopped since.
As of this writing, they are up an impressive 61% on the day. The previous week had seen shares decline gradually, decreasing by more than 22%. The last month wasn’t much better with shares falling by more than 16%.
What It Means
While the fall has certainly been turbulent for NRXP stock, this development could easily lead to the turn around that the company needs to embark on a sustainable upward trajectory. Today brought another positive development, as the released statement also noted that “a European QP (Qualified Person) Auditor has completed an inspection at a separate manufacturing facility with no adverse findings.”
Even as vaccines are made readily available, the global need for Covid-19 treatments is great. The market for treatments and vaccines remains hot, particularly as new variants develop. And as long as these problematic factors remain in place, there will be a need for drugs that can treat Covid-19 and help the patients who have already been affected.
Why It Matters
NRx still needs to obtain full approval from the FDA to move forward with the commercial sale of ZYESAMI. As need for drugs like it grows outside the U.S., though, the company may be able to procure contracts to produce it internationally before the FDA has issued all necessary authorizations. In either scenario, NRXP stock will enjoy some gains and likewise, its investors.
For anyone considering a bullish play on biopharma, or more specifically, those with ties to Covid-19 prevention and treatment methods, NRXP is a stock worth watching in the near future.
On the date of publication, Samuel O’Brient 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.