Athersys (ATHX) Stock Runs With Highly Relevant COVID-19 Treatment

Athersys ATHX Stock News

Athersys, Inc. (NASDAQ: ATHX) is running for the top in the market this morning, trading on gains of well over 20%. The gains come after the company reported its financial results. However, the financial results have little to do with the run. In fact, the growth in value this morning has more to do with the company’s work in the COVID-19 space. Here’s what’s going on:

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ATHX Stock Runs On Coronavirus Update

As mentioned above, Athersys provided its results for the most recent quarter in a press release today. However, the financial results weren’t the main point of inflection. Instead, investors were focused on the company’s work in the coronavirus space.

According to the release, clinical results in ARDS supported fast track designation by the FDA and BARDA as a “Highly Relevant” program in the treatment of COVID-19 and other pathogens.

In a statement, Dr. Gil Van Bokkelen, Chairman and CEO at ATHX, had the following to offer:

Throughout all of 2019, we made important progress in our key clinical programs in stroke and in other areas, as evidenced by the highly promising clinical results from our ARDS program. Those results led to the subsequent Fast Track designation from the FDA. The importance of this program has been reinforced by the recent COVID-19 outbreak, where many patients have subsequently become critically ill with ARDS, which a recent World Health Organization analysis has confirmed is the primary cause of death for these patients. This often fatal syndrome can be induced by a range of pathogens, including COVID-19, SARS, MERS and virulent influenza.

Other than placing patients on a ventilator, there is no effective treatment for ARDS. In January, in the early stages of the COVID-19 outbreak, as part of the U.S. Government’s COVID-19 CoronaWatch program, we were approached by BARDA in its leadership role focused on expediting diagnostics, vaccines, antivirals and therapeutic treatments for these patients. After undergoing multiple reviews, we are pleased to announce that MultiStem® was designated as a “Highly Relevant” therapeutic for COVID-19 by BARDA. We now are working to expedite the further advancement of the program, which has also shown relevance to certain other areas of interest for BARDA.

This News Is Overwhelmingly Exciting

The news issued this morning is huge. After all, we all know that the coronavirus is a very real, very serious issue. It has infected nearly 200,000 patients and killed more than 7,000 globally. Moreover, the virus is changing the lives of Americans across the country. With schools, events, and more being shut down, everyone is waiting for the end of this issue.

ATHX is at the cusp of something big here. The company has already created a treatment that was being used to address other, like conditions. As such, their treatment is promising in the coronavirus space.

With the FDA and BARDA both seeing promise in the treatment as a potential option for coronavirus, Athersys is now the first company that has publicly announced Fast Track Designation in the space.

So, while there are several companies racing to find a treatment, it seems as though the company is leading the charge. Of course, speed is everything in the face of a pandemic. So, with ATHX leading the charge, this is a stock that’s well worth watching.

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