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2020 introduced the term “coronavirus stocks.” These are the companies working on solutions to fend off the Covid-19 global pandemic. As a result, several of the names involved in the hunt for treatments and vaccines accrued incredible gains throughout the year. With 2 vaccines already granted EUAs, and more on the way, it’s doubtful the same levels of enthusiasm could be attained for these stocks in 2021.
Hold that thought, say investors of Adamis Pharma (ADMP). Shares are already up by a massive 160% this month, 78% of which were amassed in Wednesday’s session.
The surge came after the company announced it has submitted an Investigational New Drug (IND) to the FDA for the use of Tempol as a treatment for COVID-19.
Last June, Adamis licensed Tempol from Matrix Biomed, and in pre-clinical studies, the treatment has displayed strong anti-inflammatory, anticoagulant, and antioxidant abilities. In animal models, Tempol has exhibited the ability to lower proinflammatory cytokines (cytokine storm) and it has also shown it can decrease the genes correlated to hypoxia. Adamis believes reigning in hypoxia and the cytokine storm could be vital to the successful treatment of COVID-19.
The company has indicated it expects to receive funding to initiate clinical trials, via the government’s Operation Warp Speed (OWP) program.
Covering the stock for Raymond James, analyst Elliot Wilbur commented, "While we continue to view that the core of ADMP’s valuation is with the potential approval of ZIMHI – its high-dose injectable naloxone formulation for the treatment of opioid overdose – and FDA approved Symjepi, given the unmet need on the COVID-19 treatment front, we believe ADMP’s progress with Tempol could provide some positive upside to the name that isn’t fully priced into its current share levels."
For now, Wilbur sticks to a Market Perform (i.e. Hold) rating without providing a price target. (To watch Wilbur’s track record, click here)
Only one other analyst has reviewed Adamis’ prospects recently, also rating the stock a Hold. Therefore, the stock qualifies with a Hold consensus rating. (See ADMP stock analysis on TipRanks)
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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.