The Noxopharm Ltd (ASX: NOX) share price has been a strong performer on Monday.
The clinical-stage drug development company’s shares were up as much as 13% to 63 cents at one stage today.
The Noxopharm share price has since pulled back and is now trading just 3.5% higher at 57.5 cents.
Why is the Noxopharm share price rocketing higher?
The Noxopharm share price was given a big boost this morning from the release of a positive announcement.
That announcement reveals that the company is positioning its Veyonda (idronoxil) product as a COVID-19 treatment. This is based on a well-tolerated and selective anti-inflammatory action.
According to the release, this follows an important discovery about the anti-inflammatory mechanism of action of idronoxil through its partnership with Hudson Institute of Medical Research.
The release reveals that the discovery is the identification of the enzyme, TANK-binding kinase 1 (TBK1), as the molecular target of idronoxil in terms of its anti-inflammatory properties.
However, it is worth noting that the discovery is not yet peer reviewed in a scientific publication. A submission is anticipated in two months.
Management commentary
The Hudson Institute’s Associate Professor and Head of the Nucleic Acids and Innate Immunity Laboratory, Michael Gantier, said: “TBK1 is a point of convergence of many inflammatory pathways, and a target under significant investigation by several big pharmaceutical companies. Our latest findings, which are being prepared for publication, demonstrate that idronoxil may have applications in a range of diseases where TBK1 facilitates aberrant inflammation.”
“Critically, TBK1 also directly controls production of interferon-beta, a cytokine associated with long-COVID symptoms. This suggests that idronoxil may not only be useful to prevent progression of COVID-19 patients from mild to severe disease, but also may decrease the risk of long-lasting post-infectious symptoms, seen in up to half of COVID-19 patients,” he added.
The Noxopharm share price is up 22% since the start of the year.
The post Noxopharm (ASX:NOX) share price jumps 13% on COVID treatment update appeared first on The Motley Fool Australia.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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