What Is Going on With Edesa Biotech (EDSA) Stock Today?

  • Shares of biopharmaceutical firm Edesa Biotech (EDSA) jumped 7% today before dipping into the red.
  • Edesa produced encouraging Phase 2 results for a monoclonal antibody targeting respiratory symptoms.
  • EDSA stock may benefit from broader positive implications.
EDSA stock - What Is Going on With Edesa Biotech (EDSA) Stock Today?

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Amid a soft opening performance for the major equity indices, Edesa Biotech (NASDAQ:EDSA) shot up 7% against the prior session before dipping into negative territory during the afternoon session. The biopharmaceutical company, which specializes in inflammatory and immune-related diseases, announced positive Phase 2 results for its monoclonal antibody candidate targeting respiratory symptoms. Because the therapeutic has the potential to address respiratory conditions associated with multiple diseases, EDSA stock garnered investor interest.

Specifically, Edesa’s antibody candidate, EB05, represents a “single-dose treatment for hospitalized patients with or at risk of developing Covid-19 induced Acute Respiratory Distress Syndrome (ARDS),” per the company’s press release. In the final Phase 2 clinical result, “Edesa reported that EB05 demonstrated a statistically significant and clinically meaningful trend for mortality and survival time for all randomized subjects in the critically ill cohort (the intent to treat, or ITT, population).”

“Achieving statistical significance within one of the most difficult to treat subgroups of patients with Covid-induced ARDS has increased our excitement and belief that EB05 could become a standard-of-care treatment option,” said Par Nijhawan, MD, CEO of Edesa.

Broader Implications for EDSA Stock

What distinguishes EB05 is that the therapeutic targets the patient’s own immune response rather than the SARS-CoV-2 virus. Since the immune system responds to various threats other than the virus that causes Covid-19, Edesa believes that EB05 “could potentially have broad application across multiple disease indications.” Naturally, this dynamic bolsters the long-term potential of EDSA stock.

For instance, medical practitioners — assuming regulatory approval — could apply EB05 to ARDS stemming from influenza or other deadly pathogens. According to the Centers for Disease Control and Prevention (CDC), the “flu has resulted in between 9 million and 41 million illnesses annually” in the U.S. Therefore, Edesa may command a large total addressable market. Logically, this circumstance should bode well for EDSA stock.

Nevertheless, the framework for clinical-stage biopharmas present significant risks. EDSA stock itself has fallen around 75% on a year-to-date basis. Therefore, prospective investors must exercise caution and considerable due diligence before engaging the opportunity.

On the date of publication, Josh Enomoto 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.

A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare.

Article printed from InvestorPlace Media, https://investorplace.com/2022/09/edesa-biotech-jumps-7-percent-positive-clinical-trail-results/.

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