With the holiday season behind us, America’s focus has once again shifted to the surging omicron variant. Cases continue to rise across major cities, and many European nations are facing lockdowns. U.S. leaders are trying to avoid such strict measures, which means a renewed focus on Covid-19 treatments for those already infected. While some companies in the pharmaceutical and biotech spaces are still working hard to adjust their vaccines and produce new ones, others have shifted focus to engineering effective treatments. One such company is NRx Pharmaceuticals (NASDAQ:NRXP). Indeed, the company has some good news to report today. As a result, NRXP stock has spent the morning moving upward.
What’s Happening With NRXP Stock
Today brought the announcement that the clinical stage pharmaceutical company has submitted an emergency use authorization (EUA) application to the U.S. Food and Drug Administration (FDA) for its drug ZYESAMI (aviptadil). The drug is intended to treat Covid-19 patients whose risk of death is immediate. The company seeks to administer treatment to deathly ill patients who have already received other pharmaceutical treatments such as Remdesivir.
Since markets opened this morning, NRXP stock has been rising. Despite some downticks, it shot up by 5% within the first hour of trading. These numbers are encouraging, but the stock is still in the red for the week. The past five days have seen NRXP stock fall by 0.2%. Following a December of declines, it is down 17% for the month. That said, the stock has risen 2% from where it ended 2021.
Why It Matters
2021 was defined by the vaccine race, and Pfizer (NYSE:PFE) and Moderna (NASDAQ:MRNA) emerged as the clear winners. Now that 2022 is underway, it’s clear that the race is going to be for ways to treat Covid-19. Pfizer’s antiviral pill has recently received a significant order from the White House. However, the progress being made by smaller companies such as NRx is likely going to be just as important.
NRx stock isn’t the only name rising amid its news today. Its Swiss partner, Relief Therapeutics (OTCMKTS:RLFTF) also saw shares rise as speculation mounts surrounding the potential breakthrough treatment the two companies are working on.
As can be expected in cases such as this, the gains both companies are experiencing will likely be short-lived unless the FDA grants the necessary approval. That said, NRx seems to be advancing in that direction. A week ago, it made headlines when it filed a Breakthrough Therapy Designation request for ZYESAMI in an attempt to have the treatment expedited.
According to the statement released by the company, patients who were treated with ZYESAMI demonstrated “statistically significant odds” of surviving and ultimately being free of respiratory failure after either 28 or 60 day periods, suggesting that the treatment may indeed be effective.
What It Means
The need for Covid-19 treatments has never been greater. And as long as cases continue to rise, this need will only increase. It’s clear that the medical world needs a last line of defense against this virus, and it just might find it in ZYESAMI.
As previously noted, the long-term success of NRXP stock will greatly depend on the verdict from the FDA regarding this possible breakthrough treatment. If things continue to progress in a positive direction, though, it will mean a good year for both NRXP and RLFTF. This is definitely a story investors should be paying attention to.
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.