ARCA Biopharma (ABIO) Stock Rockets On COVID-19 News

ARCA Biopharma ABIO Stock News

ARCA Biopharma Inc (NASDAQ: ABIO) is running for the top in the premarket hours this morning, trading on gains of more than 50%. The gains come after the company announced a development program surrounding a COVID-19 treatment candidate. This, combined with a low float and tiny microcap is creating compelling gains. Here’s what’s going on:

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ABIO Stock Is Flying On COVID-19 Development News

In the press release, ARCA Biopharma said that it is launching a new development program surrounding AB201. The company believes that the treatment has potential as an option for patients with COVID-19 associated coagulopathy (CAC), and related inflammatory response.

In the release, ABIO said that CAC is one of the most serious side effects seen in COVID-19 patients. Previously, AB201 has undergone clinical testing ina  Phase 2 trial including more than 700 patients. The treatment has generated substantial safety data that the company said could speed up the development process.

In fact, the company said that it plans on filing an IND application with the FDA in the third quarter, and initiating late-stage clinical testing shortly thereafter.

Importantly, recent research suggests that the disease syndrome caused by coronavirus may have a lot in common with other coagulopathic disorders. In these disorders, the blood’s ability to coagulate is impaired by consumption of clotting factors. It is believed that AB201 may have important antiviral and anti-inflammatory activity in addition to its anticoagulant effects.

In a statement, Dr. Michael Bristow, President and CEO at ABIO, had the following to offer:

During this global health crisis, we believe it is important to rapidly and collaboratively evaluate multiple technologies to address COVID-19 and the associated pathologic host responses. The combination of anticoagulation, anti-inflammatory effects and antiviral activity have the potential to make AB201 a unique therapeutic to treat patients afflicted with COVID-19 while vaccine development is underway and for patients for whom a vaccine is not effective. We believe this therapeutic approach may also have potential to address future outbreaks of diseases related to other RNA viruses.

This Is Big News

All in all, the news released by is incredible for the company and its investors. First and foremost, while the United States is starting to slowly reopen, COVID-19 is still very much alive. In fact, today, the death toll in the U.S. surpassed 100,000.

As such, the world is in need of treatment options and ARCA Biopharma is now on pace to provide one. Importantly, previous strong safety data will likely open the doors to a late-stage trial that will take place this year. If all goes well in the trial, the treatment could hit the market as soon as next year, generating an incredible revenue opportunity for ABIO.

Moreover, the stock is in the perfect position to fly. At the moment, the news seems to be triggering a short squeeze. At the same time, the stock has an extremely low float and trades with a market cap of under $7 million. All of these factors combined suggest that the gains we’ve seen in the premarket are just the beginning.

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