Synairgen Plc shares increased by 557%. They have a cure for the coronavirus?
A small pharmaceutical company from the UK - Synairgen Plc - announced that the drug she created significantly reduces the risk of severe symptoms of Covid-19 disease caused by coronavirus. The market reaction was immediate and decisive - stocks went up more than 557 percent. This is - so far - the crowning achievement of its best year in the history of trading. In 2020, Synairgen has already increased O 3900%.
The British announced that they already have positive results of clinical trials. It was specifically stated that the drug developed by the company's researchers significantly reduced the risk of the most severe symptoms in people infected with Covid-19 causing coronavirus.
The clinical trial was carried out on 220 people in the hospital and infected with the coronavirus. They were all given a preparation called Synairgen SNG001 and treatment progress was closely monitored. It turned out that the probability of not only death, but even the need for a respirator compared to people who received a placebo was reduced by as much as 79%. The chances of complete recovery have doubled. Patients who received SNG001, the main component of which is interferon beta (a naturally occurring protein that is responsible for the immune response of the body when attacked by coronavirus), recovered much faster. No person died, but there were three deaths among those receiving placebo.
“We couldn't have asked for better results. In my opinion, this is an absolute breakthrough in the treatment of patients with Covid-19 " Synairgen president Richard Marsden announced on BBC TV.
Synairgen shares more expensive by 3900%
The announcement of the results did not go unnoticed in the financial markets. Following the disclosure, the company's shares rose by 20.07.2020% on Monday, July 557, 3900. A lot? It has been even better since the beginning of the year, as the rate began to increase after the announcement of the start of research on a drug for the coronavirus. Synairgen, listed on the London Stock Exchange, has already cost XNUMX% more since the beginning of the year.
This is a much larger increase than listed on the Polish stock exchange.
The Biomed price gained over 30% in just 5 trading sessions. When Biomed announced that the company is starting work on a coronavirus drug, the shares went up during the week by "only" by 30%.
Coronavirus and share prices
However, research into a cure for coronavirus is not always good news for investors. Especially if it ends with a flap. This was the case of the Fujifilm Holdings group, which was overpriced on the Tokyo Stock Exchange after information that there is no evidence of the effectiveness of the Avigan drug used in the test for Covid-19 infection. However, the drops were not great. Prices decreased by 2%.
However, Polish medical companies cannot complain about the outbreak of the coronavirus. Biomed Lublin, Medcamp, BioMaxima and Inno-Gene have increased by several hundred percent. Analysts admit that some of them were appreciated for no reason at all. Not all will earn on coronavirus, and certainly not earn as well.
- You have to analyze the foundations of each company separately. It cannot be assumed that due to the coronavirus it is automatically worth investing in all medical companies - says Arkadiusz Bebel, manager of Quercus TFI funds.
Some, however, have already confirmed their excellent results, such as Mercator Medical - a manufacturer of medical gloves and materials. Thanks to the excellent financial results, the company's share price increased by 400% this year.