GT Biopharma GTBP Stock News

Recently, we’ve seen iBio (NYSEAMERICAN: IBIO), Novavax (NASDAQ: NVAX) and AIM ImmunoTech (NYSEAMERICAN: AIM) make runs for the top on coronavirus news. While the boat may have sailed on those runs, another company, GT Biopharma Inc (OTCMKTS: GTBP) is likely the next candidate to see tremendous COVID-19 related gains. Here’s why:

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GTBP Stock Gains On Coronavirus Treatment Partnership

In a press release issued this morning, GT Biopharma announced that it has entered into a collaboration agreement with Cytovance Biologics. Cytovance is a United States-based contract development and manufacturing organization. The company is also a subsidiary of Shenzen Hepalink Pharmaceutical Group, a publicly traded company with a market cap of CNY31.5 billion.

The agreement surrounds the development of services for a TriKE therapeutic for the treatment of coronavirus infection. According to the terms of the agreement, the two companies will focus on preparing sufficient quantities of the coronavirus TriKE drug product developed by GTBP for preclinical evaluation using Cytovance’s E. coli-based Keystone Expresion System.

From there, the two will scale up producting by taking advantage of Cytovance’s GMP microbial manufacturing platform for evaluation of TriKE in humans to treat coronavirus infection.

In a statement, Jesse McCool, Ph.D., Chief Technology Officer at Cytovance, had the following to offer:

We are pleased to have the opportunity to work with GT Biopharma on this timely endeavor and help move their TriKE product into clinical testing for the treatment of coronavirus infection.

The above statement was followed up by Anthony Cataldo, Chairman and CEO at GTBP. Here’s what he had to say:

We are pleased to have the opportunity to collaborate with Cytovance in furthering our TriKE infectious disease research program to investigate the therapeutic utility of TriKE to attack coronavirus infection. The flexibility and breadth of our TriKE therapeutic platform allows us to quickly adapt to new disease targets, and rapidly advance TriKE product opportunities into the clinic. Our experience developing the HIV TriKE which demonstrated virus infected cell killing has led us to employ a similar design strategy for our new coronavirus TriKE.

Why This News Is So Exciting

First and foremost, with the coronavirus reaching epidemic proportions and expected to spread to pandemic proportions, research to combat the virus is very important. So, the simple fact that GT Biopharma is working on a therapeutic agent in the space is exciting in and of itself. However, the excitement goes further than that.

If you’ve been following the companies that are working in the space, you’ll see a common theme. The vast majority of these companies seem to be working to develop a vaccine. However, a vaccine isn’t a cure-all.

Think about it, flu vaccines have been available for years, yet a massive amount of people still die from the flu every year. In fact, the condition takes the lives of about 56,000 consumers each year.

Coronavirus will likely be in the same scenario. Even when vaccines are readily available, COVID-19 is likely to be a killer agent. As such, creating a therapy to treat those infected with the virus is a crucial step in combatting it.

On the treatment side of the equation, GTBP is one of very few companies that have even started work. While there are tens of companies working to create vaccines, GT Biopharma is one of only three that seem to be working to find a cure and a vaccine at the same time using their TriKE technology.

Importantly, one of the three companies looking for a cure doesn’t have anything of substance yet. So, in the race to develop an effective therapeutic option, GTBP is one of two companies with viable candidates. That’s a big deal.

Moreover, the company is partnering with a big player in the space here. Shenzen Hepalink Pharmaceutical Group is a major publicly traded player valued at $4.5 billion. Not to mention, the fact that the company is based in China, where the epidemic first began, is a major strategic advantage.

After all, with the spread of COVID-19 and the fact that it is a deadly virus in mind, those who do become infected will want to be treated quickly. Should this small company with a market cap of under $10 million develop a treatment to address this issue, it would be entering into a tremendous revenue opportunity. Considering this GTBP should be watched very closely!

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Disclosure – The author is not a registered investment advisor or broker dealer. The information in this article is believed to be accurate however no guarantees can be provided. CNA Finance, parent company to Alpha Stock News received fifteen thousand dollars from GT Biopharma in exchange for digital outreach services.

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