Humanigen HGEN Stock News

Humanigen Inc (OTCMKTS: HGEN) is quickly becoming one of the hottest stocks on Wall Street. The company announced the raise of just under $72 million through J.P. Morgan Securities, LLC. that excited investors.

Afterall, funding to the tune of more than $70 million doesn’t just fly around for no reason. These funds will be used to further develop the company’s treatment for COVID-19 pneumonia patients that was designed to prevent and treat one of the most serious complications of the illness known as cytokine storm. Here’s what you need to know:

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HGEN Stock Could Lead The Charge In Treating Severe COVID-19 Symptoms

Humanigen is known as the company that pioneered the approach to the treatment of cytokine storm, making it THE cytokine storm company. There’s no ifs, ands or buts about it.

Importantly, the company can execute faster than anyone, thanks to its deal with Gilead Sciences surrounding the potential of its lenzilumab candidate to reduce the risk of cytokine storm in CAR-T. This work recently earned the company a feature on Endpoints News.

So, What’s The Company’s Role In COVID-19 And Why Is It So Valuable?

Endpoints News laid out the timeline of the company’s work in COVID-19 and outlined the potential of its treatment, lenzilumab. In early March, HGEN started to talk about lenzilumab as a possible late stage candidate that could effectively prevent and treat cytokine storm in COVID-19 patients. Unfortunately, this is one of the most severe and lethal symptoms of the condition.

By March 20, the company started to talk about the prospect of a Phase 3 clinical trial in COVID-19 patients. Interestingly, the FDA responded incredibly quickly. In fact, before the close of the month, the company submitted trial protocols to the FDA, three days later, a CRO was in line.

Importantly, within 72 hours of submission to the FDA, an emergency IND was created. 13 days later, the FDA gave the greenlight to start the Phase 3 trial. That kind of turn around is unheard of and serves as a source of validation for the company’s work.

On May 6, HGEN announced that it dosed its first patient. The company’s fast-paced work to bring this treatment to patients in need caught the attention of a huge investing syndicate, including Venrock Health­care Cap­i­tal Part­ners, Sur­vey­or Cap­i­tal (a Citadel com­pa­ny), Health­Cor, Valiant Cap­i­tal Part­ners, First Light As­set Man­age­ment and Ghost Tree Cap­i­tal. These investors have agreed to fund the company with more than $71 million with the goal of bringing this treatment to market, news that just hit the market days ago.

Key Points To Consider

  • The Speed Of The FDA: The FDA acted incredibly quickly here, validating the company’s work in COVID-19.
  • A Huge Investing Syndicate Sees Value: Nearly $72 million is by no means chump change. This large investment further validates the company’s work.
  • Cytokine Storm: HGEN has been working on cytokine storm for years in cancer patients. However, with this being one of the most severe symptoms of COVID-19, the company is in the right place at the right time. With it’s previous work, it is already known as THE cytokine storm company, there’s no denying it.
  • Late Stage Trials: The company now has the funding it needs to move forward with Phase 3 trials. Should these trials go well, a treatment may be on the market as soon as next year.
  • Gilead Sciences: Through the company’s partnership with Gilead Sciences, it has the expertise and ability to execute faster than any would-be competitors.

The Bottom Line

The bottom line is that Humanigen is a huge play at the moment. While several companies are focused on COVID-19 vaccines, few are focused on treatments. Moreover, this is the only company that is even ready for Phase 3 clinical trials, let alone already embarking on them.

At the end of the day, with the various points of validation, long-term work in cytokine storm, Phase 3 trial, and strong potential of lenzilumab, if you’re not watching HGEN closely, you’re missing out.

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