Although the news about CytoDyn (CYDY) saying it could probably adapt its leronlimab drug to battle COVID-19, is two weeks old, the media finally caught up with the story when news that a small sample of patients with COVID-19 have responded positively to the drug treatment.
In this article we’ll look at the potential opportunity this offers patients and CytoDyn, and also the many other diseases and conditions leronlimab could be useful for.
Leronlimab and COVID-19
The primary use and benefit of leronlimab is for patients having respiratory complications from COVID-19. At this time it is believed the treatment strengthens the “immune response mitigating the ‘cytokine storm’ that leads to morbidity and mortality in these patients.”
Interim Chief Medical Officer of CytoDyn, Jacob Lalezari, M.D., said this about the treatment: “These preliminary results give hope that leronlimab may help hospitalized patients with COVID-19 recover from the pulmonary inflammation that drives mortality and the need for ventilators…”
IncellDx CEO Bruce Patterson, M.D., said that after three days of therapy the immune profile of the patients improved returned to close to normal levels, with “the levels of cytokines involved in the cytokine storm were much improved.”
While being a small trial sample, it does have a lot of potential to successfully treat COVID-19 going forward, and if the growing number of patients being treated by leronlimab respond in similar ways, it’s going to be an extraordinary boost to the value and share price of the company; but that’s only part of the story.
More uses for leronlimab
Along with the treatment of HIV, leronlimab has also been found to be effective in treating the spread of breast cancer. In trials the drug has proven to successfully slow down the metastatic progress, and in some cases the circulating tumor cells (CTC) fell to zero.
The company is working on treatments for a number of indications that include other types of cancers. With the company asserting it can adapt leronlimab to treat a variety of diseases, and so far has shown those assumptions have a significant chance of being successful, leronlimab could be a powerhouse drug that can be used for a platform do develop a wide variety of treatments.
If that’s how it turns out for CytoDyn, it’s going to make the recent surge in price seem very small.
Media and investors starting to discover CytoDyn
One of the more important things from a business standpoint concerning the potential of leronlimab has been the recent media coverage of the drug, which has put CytoDyn on the map.
That can be a double-edged sword if after the growing media attention the company is receiving, it ends up not being able to treat many people with COVID-19. It don’t believe that’s how it’ll play out, but it is a possibility.
On the other hand, the company is receiving the type of attention that has resulted in investors looking further under the hood of the firm, and so far they like what they see.
In the short term term COVID-19 will drive the share price of the company, but once further research reveals the significant potential of leronlimab in regard to a variety of diseases and symptoms, it could propel CytoDyn into being an elite player in the sector. It will of course also drive the share price far beyond where it stands today.
Unsurprisingly, according to TipRanks, investor sentiment is Positive, with individual portfolios in the TipRanks database showing a net increase in CYDY.
CytoDyn has been propelled into the national and international spotlight with the potential to successfully treat COVID-19. So far it has handled the attention well, and has taken the right steps to balance the increasing media coverage.
With a growing number of patients being treated, and the near-term revealing of the results, if the company is able to prove it can sustainably treat the virus effectively, all bets are off as to how high the share price is going to go.
Even that’s a distinct possibility, it has been shown that in some of the nations being hit earlier and hard with the virus, that it starts to slow down. If that ends up being how it plays out over the next month or two, we may see some of the current urgency start to wane, especially if governments start to encourage citizens to get back to work and interact with one another once again.
Under that scenario, CytoDyn may not get the boost it would get if the virus were to remain a totally disruptive factor in the lives of billions of people on the planet.
Even so, leronlimab and CytoDyn are now on the radar of the market, and the company will never return to the obscurity it once operated under.
No matter how it works out with COVID-19, leronlimab has emerged as a potential candidate to treat a wide variety of diseases and their symptoms; that means over time this company has a probable great future ahead of it, as do its shareholders.
Concerning COVID-19, if the company does deliver on that, that future is going to be pulled back closer to the present in relationship to the impact on the value of the company. This company should be kept on our watch lists, as there will be a lot more media coverage in the days, weeks, and months ahead. It will provide a lot of opportunities to profitably trade CytoDyn.
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