Edesa Biotech (EDSA) Stock Rockets On COVID-19 Study Approval

Edesa Biotech EDSA Stock News

Edesa Biotech Inc (NASDAQ: EDSA) is running for the top in the market this morning, trading on gains that are better stated in multiples than percentages. The gains come after the company received approval from Health Canada to initiate a study in COVID-19. Here’s what’s going on:

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EDSA Stock Rockets On COVID-19 Study Approval

In the press release, Edesa Biotech said that it received expedited approval from Health Canada to begin a Phase 2/3 clinical trial. In the trial, the company will assess its investigational drug known as EB05.

EB05 is currently under development as a potential treatment for patients with moderate to severe COVID-19. Importantly, there are several doses of EB05 available and the company is seeking government grants to accelerate the initiation and rollout of the study at up to 30 different clinical sites.

EDSA said that EB05 is a monoclonal antibody that has demonstrated the ability to surpress the release of proinflammatory cytokines. These cytokines are often observed in severe COVID-19 patients.

Based on previous clinical data and the mechanism of action, the company said that it believes that modulating this well understood signalling pathway could reduce the number of ICU patients and intubation/ventilation procedures. At the end of the day, shoud this drug be successful, it will save lives.

Also, the company already has strong safety and tolarability data surrounding the drug. In fact, data from 120 subjects that was previously released shows that the drug has proven to be safe and well-tolerated.

In a statement, Dr. Par Nijhawan, CEO at EDSA, had the following to offer:

Health Canada’s expedited review process and subsequent approval of our Clinical Trial Application represents a significant step in developing new drugs that can treat the underlying conditions induced by the SARS-CoV-2 infection. We greatly appreciate the actions being taken by the government to expedite COVID-19 applications and provide support for clinical studies.

This News Is Huge

The news issued by Edesa Biotech this morning is overwhelmingly positive. So far, monoclonal antibodies that supress the release of inflammatory cytokines have been the strongest candidates to date. In fact, Humanigen just issued data today showing that their similar treatment took patients from severely sick to being discharged from the hospital in just five days.

Moreover, with EDSA already having strong safety data and the mechanism of action already being proven, this could be the next big treatment in the space. Of course, that would be overwhelmingly valuable. As such EDSA stock is one to watch closely.

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