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Why Is InflaRx (IFRX) Stock Up 40% Today?

  • InflaRx (NASDAQ:IFRX) surged more than 40% on news the company plans to file for FDA emergency-use authorization for Vilobelimab.
  • Its Vilobelimab is a monoclonal antibody treatment for critically ill Covid-19 patients.
  • Investors have a key catalyst to focus on for this biotech stock with an application expected some time in Q3.
IFRX stock - Why Is InflaRx (IFRX) Stock Up 40% Today?

Source: tungtaechit / Shutterstock.com

InflaRx (NASDAQ:IFRX), a maker of anti-inflammatory therapeutics, is up 40% today after announcing it’s pursuing emergency-use authorization from the U.S. Food and Drug Administration for its Covid-19 treatment. Its Vilobelimab is the treatment InflaRx is targeting for FDA approval. Vilobelimab is a monoclonal antibody treatment for patients critically ill with Covid-19.

Today’s impressive rise indicates that the market believes there’s still significant profit potential from launching Covid-19 therapeutics. For those critically ill, Vilobelimab could save more lives. Accordingly, there’s good reason for such optimism today.

Let’s dive into some of the details of this announcement, as well as what investors should expect moving forward.

Is IFRX Stock a Buy on Expected FDA Application?

There’s certainly a lot to like about the company’s press release on its expected FDA application for Vilobelimab. InflaRx reportedly had an encouraging Type B meeting with the FDA. And given initial data, perhaps this treatment could get approval. After all, we’ve seen some recent approvals in the vaccine space many were skeptical about.

Additionally, the need for Covid-19 treatments appears to be increasing. With vaccinations ongoing but declining, the focus in the battle against Covid-19 appears to be shifting toward therapeutics. In this space, InflaRx appears to be a speculative-yet-promising bet.

That said, the company hasn’t yet officially applied for FDA approval. And with a planned submission date sometime this quarter, more data will likely be needed to support such an application. Between now and then, a lot can change. Accordingly, this isn’t an investment that’s without risk.

However, it is clear that InflaRx has seen impressive speculative interest as a buy in this environment. I can understand this thesis. As far as clinical-stage biotech stocks go, this is one I’ve got on the watchlist.

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On the date of publication, Chris MacDonald 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.

Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.


Article printed from InvestorPlace Media, https://investorplace.com/2022/07/why-is-inflarx-ifrx-stock-up-40-today/.

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