Contrafect Corporation CFRX Stock News

ContraFect Corp (NASDAQ: CFRX) is making a run for the top in the market this morning with early gains of nearly 40%. The gains come after the company announced that it raised more than $7 million in non-dilutive funds.

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CFRX Stock Rises On $7 Million+ Fund Injection

In a press release issued this morning, ContraFect said that the Congressionally Directed Medical Research Programs, also known as CDMRP, has awarded the company $7.2 million in funding. In particular, the funding came from the Military Infectious Disease Research Program (MIDRP), United States Army Medical Research and Development Command (USAMRDC).

The funding will be provided to CFRX over the course of the next three years with the goal of assisting in the advancement of its lysin candidate known as CF-296. Lysins are a new class of direct lytic agents (DLAs). These are antimicrobial biologics that have the potential to result in the rapid death of targeted bacteria and the eradication of biofilms. Moreover, Lysins display synergy with conventional antibiotics.

About CF-296

CF-296 has already shown some promise. The engineered variant of exebacase has shown that it has the potential to improve outcomes for patients with Staphylococcus aureus bloodstream infections. This is particular the case for patients with methicillin-resistant Staph aureus, also known as MRSA.

In fact, in a Phase 2 study, the responder rate was 43% higher in patients treated with exebacase as compared to those treated with antibiotics alone. Moreover, CF-296 has shown to have rapid, potent activity against Staph aureus and related biofilms.

In a statement, Roger J. Pomerantz, MD, Chairman and CEO at CFRX, had the following to offer:

We are very pleased to receive significant funding from USAMRDC to advance our next lysin candidate, CF-296. This further validates our novel therapeutic approach, using direct lytic agents, which are non-antibiotic anti-infective agents, as a new medical modality, following the compelling clinical data reported from our Phase 2 trial of exebacase in patients with Staph bacteremia.

Why This News Is So Exciting For Investors

At the end of the day, there are two reasons that the news today proved to excite investors so much. First and foremost, the $7.2 million grant will help to alleviate ContraFect of the financial burden associated with the development of this new treatment option.

Moreover, these grants don’t just get handed out. In order to qualify for a grant like this, data must be promising. So, the grant acts as a source of validation for the company’s work in the fight against Staph infections.

The Market Potential Is Very Large

The staph infection market is a massive one, and at the moment, the standard of care is a slew of antibiotics. However, with recent studies showing that this method of action is more effective, CFRX and its CF-296 product candidate could prove to become the leader in the space, and the space is a massive one.

In fact, it is currently estimated that by the year 2025, the Staph infection market will grow to be worth $3.9 billion. Considering the fact that the current market cap of the company sits at around $50 million, if the company were to get its hands on even a small percentage of this market, it would be a meaningful increase of value for investors.

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Final Thoughts

At the end of the day, today’s news was a big leap forward for ContraFect. With this grant in hand, the company is now financially ready to move forward with the clinical study of this new discovery. Should all go well, it could be sitting on a blockbuster treatment option, making this stock one to watch for the long term!

What Do You Think?

Where do you think CFRX is headed moving forward? Join the discussion in the comments below!

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