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.