Spherix (SPEX) Stock Gains On Coronavirus News

Spherix SPEX Stock Represents A Strong Investment Opportunity

After closing the week out on gains of more than 130% last week, Spherix Inc (NASDAQ: SPEX) is climbing again today. In the premarket, the stock has gained about 65%. So, what’s the deal? It all has to do with news that the company released Friday surrounding the Wuhan coronavirus. Here’s the scoop:

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SPEX Stock Continues Climbing On Coronavirus News

As mentioned above, on Friday, Spherix announced work with regard to the Wuhan coronavirus, also known as COVID-19. According to the company’s announcement, it has executed an exclusive option agreement with the University of Maryland, Baltimore.

SPEX said that the option agreement surrounds the technology set forth in Patent number 10,434,116, “Methods of Treating Coronavirus Infection.” As a result, the company can now use this invention to continue the development of a treatment for the coronavirus.

Ultimately, this invention was part of a government program. In fact, it was made with the support of a grant that was awarded by the National Institutes of Health.

SPEX will be moving quite quickly here as well. After all, the option requires the company to complete its due diligence and execute a license agreement for commercial development by no later than May of 2020.

Why Investors Are So Excited

The excitement surrounding Spherix makes a lot of sense. If you’ve been following the market since COVID-19 hit the mainstream, you know that times have been tough for most. However, those that announce that they are working on a vaccine or treatment, or even have ancillary products to prevent the virus, are seeing tremendous gains.

That’s because COVID-19 is a massive issue. In fact, to date, there have been well over 100,000 cases with almost 4,000 dealths as a result of the virus. Considering that the virus just showed itself in December of last year, it is highly contageous and spreading quickly, making it a global concern.

Considering this, those that develop vaccines and treatments for the condition have an incredible revenue opportunity ahead. However, that’s not the only reason to be exciting here.

It’s important to keep in mind that with the announcement Friday, SPEX has joined a small handful of companies. While everyone and their friends seem to be working on coronavirus vaccines, vaccines can only do so much. After all, even though there is a vaccine for the flu, around 60,000 people die annually from the condition.

So, developing a treatment is key. Fortunately for SPEX and its investors, there is only a very small list of companies working on a treatment, meaning that competition is slim. As a result, the company has a big chance of becoming a major player in the space here. So, the recent excitement in the stock is definitely warranted.

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