Corvus Pharmaceuticals Inc (NASDAQ: CRVS) is making a run for the top in the market this morning for multiple reasons. First and foremost, the company announced data from a small clinical trial of a potential COVID-19 treatment. The company also announced that it co-founded a Chinese subsidiary. Here’s what’s going on:
Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!
CRVS Stock Jumps On COVID Data
First and formoest, Corvus Pharmaceuticals released interim details from a small, early-stage clinical trial. The trial indicates that the company’s experimental immunotherapy prodduct could produce antibodies and T-cell responses in COVID-19 patients.
CRVS tested three doses in 15 patients in the Phase 1 clinical study. The company plans to enroll 15 more patients with mild to moderate COVID-19. While the company released data from the first 15 patients, it is expected that full data from the study will be available by the end of the year.
CRVS Co-Founded A Subsidiary
The company also announced that it has co-founded a new China-based biopharmaceutical company by the name of Angel Pharmaceuticals. According to the release, Angel is on a mission to bring innovative quality medicines to Chinese patients for the treatment of serious diseases, including cancer, autoimmune diseases and infectious disease.
The company was formed as a wholly-owned subsidiary of Corvus and was launched with a post-money valuation of $106 million. The company received $41 million in cash from a Chinese investor group that includes funds associated with Tigermed and Betta Pharmaceuticals.
Importantly, Angel Pharmaceuticals has licensed the rights to develop the three clinical-stage candidates at Corvus, including ciforadenant, CPI-006 and CPI-818 in greater China. Angel has also obtained global rights to all BTK inhibitor preclinical programs at CRVS.
In a statement, Richard A. Miller, M.D., President and CEO at CRVS, had the following to offer:
The formation and launch of Angel Pharmaceuticals to develop our product pipeline in greater China opens a significant new opportunity for Corvus. We expect Corvus shareholders will benefit from this collaboration in two main ways: our ownership position in Angel in the rapidly growing Chinese biotech market, and the acceleration of our product development capabilities through the participation of patients in China.
We believe Angel is positioned for success as a science-based Chinese biopharmaceutical company backed by an impressive group of investors with financial resources, and significant regulatory, drug development and commercialization experience. Their investment is strong validation of Corvus’ pipeline and its importance in addressing unmet needs in the Chinese and global markets. We have already begun working with the Angel leadership to initiate clinical trials in China with ciforadenant, CPI-006 and CPI-818 in cancer, autoimmune diseases and infectious diseases within the next 12 to 18 months. We believe that the expertise and development capabilities at Angel will accelerate and enhance Corvus’ global development capabilities.
This News Is Huge
The news released by Corvus Pharmaceuticals today proved to be overwhelmingly positive. First and foremost, the company’s candidate for the treatment of COVID-19 is showing promise, with further data expected later this year that will act as a catalyst.
Beyond that the formation of Angel Pharmaceuticals is another very big story, opening the door to a massive potential audience for the company’s candidates, and offering tens of millions in funding.
All in all, CRVS is a stock that should be watched closely.
Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!
Don’t Miss The Next Big Story
Join our free mailing list below to receive real-time news alerts!