NRx Pharmaceuticals (NASDAQ:NRXP) stock gained 50% last Friday and is up another 40% in morning trading after the company said its Covid-19 treatment greatly improved survival odds in critically ill patients. So what else do you need to know?
NRXP stock is through the roof again today as the company’s latest announcement regarding its Covid-19 treatment coincides with the discovery of a new variant, omicron. The sharp rise in NRx Pharmaceuticals has lifted it out of penny stock territory. On Friday, the stock closed at $6.75 per share.
However, even with the recent surge, NRXP stock was still down 60% year to date and has fallen 56% over the last six months.
What Happened With NRXP Stock
Wilmington, Delaware-based NRx Pharmaceuticals said that its Covid-19 treatment, Zyesami, greatly helped critically ill patients who had Covid-19 and who had already taken the drug Remdesivir. Last Friday, the company released data on its early stage Covid-19 vaccine and said it believes it could evolve to become effective against the delta variant of Covid-19.
The news from NRX Pharmaceuticals coincided with the discovery of a new variant of Covid-19 that reportedly contains 30 mutations from the original strain of the illness. The discovery of the new strain was responsible for stocks, cryptocurrencies and oil prices all posting the biggest declines of the year last Friday as investors feared renewed lockdown measures. Countries around the world have already closed their borders.
Specifically, NRx Pharmaceuticals reported that its Covid-19 vaccine was tested for antibodies to the delta variant, and that, of the 11 tested samples, 10 were found to neutralize the delta variant. That news was good enough to send NRXP stock up more than 50% last Friday. And as pharmaceutical companies race to now find a treatment against the omicron variant, NRXP stock is sharply higher again today.
Why It Matters
For NRXP stock and its shareholders, the 90%-plus gains is good news in what has been an incredibly difficult year. In February 2021, NRx Pharmaceuticals was as high as $65 per share on hopes for its Covid-19 treatment. However, as hopes faded, NRX Pharmaceuticals fell to a 52-week low of $4.07.
News that NRx Pharmaceutical’s Covid-19 treatment could prove to help with current and new variants of the disease breathed life into the company that has struggled to commercialize various pharmaceuticals and bring them to market. Apart from Covid-19, NRx has been developing a medication to treat depression and bipolar disorder.
What’s Next for NRx Pharmaceuticals
It remains to be seen how far NRx Pharmaceuticals’ Covid-19 treatment will ultimately go in terms of becoming a viable, commercially available medication. Right now, the latest news from the company can best be described as promising. It’s important to remember that NRx Pharmaceuticals remains a small company and that it has not yet successfully brought a drug to market.
That said, it’s hard to ignore the big boost in NRXP stock today. For now, the shares look to have reached their bottom and are trending higher once again.
On the date of publication, Joel Baglole 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.