ADGI Stock Soars as Analysts Lock On to Its Omicron-Fighting Potential

The omicron variant of Covid-19 has sent several pharmaceutical companies flying higher this past week, such as Moderna (NASDAQ:MRNA) and Pfizer (NYSE:PFE). Today, shares of Adagio Therapeutics (NASDAQ:ADGI) are soaring higher by 80% after closing the previous trading session 34% higher. The company only has a market capitalization of $5 billion, but it issued a positive announcement concerning its SARS-CoV-2 antibody, ADG-20.

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Here’s what shareholders of ADGI stock should know as the omicron variant grabs hold of the market.

ADGI Stock: What You Should Know

While other vaccine makers are rushing to test vaccines in order to combat the omicron variant, Adagio’s ADG-20 antibody is reportedly already effective. The company stated that none of the mutations present in the spike protein of the omicron variant have been able to escape ADG-20 neutralization. The antibody was originally engineered to neutralize and anticipate mutations of the SARS-CoV-2 virus and future SARS-like viruses. Additionally, the antibody has several preferable characteristics, such as intramuscular administration and coverage of multiple variants.

Laura Walker, cofounder of Adagio, added that:

“Due to the highly conserved and immunorecessive nature of the epitope recognized by ADG20, we expect that ADG20 will retain activity against Omicron, as we have observed in in vitro models with all other variants of concern identified previously.”

Morgan Stanley Ups Its Bet on Adagio

Furthermore, Morgan Stanley raised its price target to $49 from $33 on ADGI stock after news of the omicron variant surfaced. The higher price target reflects increased sales and market share. Analyst Matthew Harrison stressed that ADG-20 is highly effective against the omicron variant, beating out antibodies from pharmaceutical giants such as Regeneron (NASDAQ:REGN) and Eli Lilly (NYSE:LLY). Harrison also expects regulators to help fund Adagio’s interim trials to more quickly bring the antibody to market. As a result, Harrison estimates 2022 sales to reach $1.8 billion. Governments stockpiling an additional 4 million doses of the ADG-20 antibody will help it reach this target.

According to TipRanks, Matthew Harrison has a success rate of 54% and an average return of 13.3% over a 1-year period. Harrison is ranked 579 out of 7,731 total analysts that TipRanks tracks. Interestingly enough, Harrison has a $60 price target for Pfizer, representing upside of 14%. He covers Moderna as well with a price target of $313, representing 15% downside.

On the date of publication, Eddie Pan 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 Publishing Guidelines.

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