The outbreak of the coronavirus in China and in some other parts of the world has been one of the biggest global developments over the past week or so. The outbreak has caused a rally in many stocks even remotely related to the treatment of this particular condition. One of the stocks that has rallied significantly since the outbreak is NNVC stock, which grew by as much as 34% this morning after NanoViricides Inc (NYSE:NNVC) confirmed that it is working on a product meant for treating the Wuhan coronavirus. Volume has been average, but the stock has shown impressive momentum this morning so far.
Anil Diwan, who is the Executive Chairman and President of NanoViricides, stated that the company has already initiated a program in order to treat those affected with the virus. However, he added that the company would need the backing of the government as well as international health agencies. International agencies include the US CDC, China’s CDC, and the WHO.
He went on to add that none of those agencies have actually been contacted yet. “We had collaborations with the CDC and USAMRIID in the past. The Company intends to pursue a relevant collaboration for testing of our drug candidates soon.”
NNVC stock is trading higher by 34% at $15.93.
Experts have stated that the coronavirus is closely connected to the SARS virus, and Diwan stated that NanoViricides has identified candidate ligands in its chemical library already. This is a highly significant development for NanoViricides, and the medicine in question could eventually have far-reaching effects on an epidemic that is fast becoming a health care emergency.
The rally in the stock is not surprising at all, but it remains to be seen how NNVC stock would perform over the course of the coming days. It goes without saying that this is a stock that could be put on the watch list at this point.
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