Clinical-stage biopharmaceutical company Adagio Therapeutics (NASDAQ:ADGI) is soaring today on news it will pursue authorization for its Covid-19 antibody treatment. ADGI stock is up a stunning 43% so far today.
So, what’s going on with Adagio lately?
Adagio is in focus today after the company announced the efficacy of its monoclonal antibody treatment. Adagio has a new batch of data that proves its ADG20 drug is an effective Covid-19 treatment. According to Adagio, the treatment reduced the risk of Covid-19 by 71% pre-exposure and 75% post-exposure. For those with mild to moderate Covid-19, the drug reduced the risk of hospitalization and death by 77% compared to the placebo.
As such, the company has announced intentions to request U.S. Food and Drug Administration (FDA) approval for its treatment. In fact, Adagio is pursuing emergency use authorization (EUA) for ADG20, hoping for approval for use in Q2 of this year.
The news comes just months after ADGI stock plunged, as lab tests failed to back up previously made claims over ADG20. The company stated the drug would be effective against the omicron variant, which laboratory data strongly refuted. ADGI fell more than 70% in a single day in December when the data was released to the public.
Notably, the majority of today’s lab data was conducted prior to the proliferation of the omicron variant. As such, it remains unclear whether the drug is effective against it.
ADGI Stock Soars Amid WHO Testing Concerns
This morning, the World Health Organization (WHO) expressed concern over a slowdown in Covid-19 testing and monitoring. Indeed, the agency stated it’s “too early to reduce the quality of surveillance.”
The WHO reiterated that data has become less relevant as countries begin to take the threat of the virus less seriously. In a statement, the agency said:
“Until we reach the end of the acute phase of the pandemic, countries must maintain sufficient epidemiologic surveillance to inform evidence-based operational decision-making on crucial parameters, including vaccination strategies, vaccine composition, use of therapeutics, and tailored and appropriate public health and social measures.”
Adagio is likely seeing gains related to the renewed WHO concerns. This is despite antibody treatments appearing less effective in addressing omicron symptoms. Indeed, in the past few months the FDA has revoked several EUAs for other monoclonal antibody therapies that appear ineffective against omicron.
On the date of publication, Shrey Dua did not hold (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.