SNG Stock Price: Synairgen plc has room to rally as its cure shines amid study doubting antibodies
|- LON: SNG has been holding its high ground around £200 per share.
- A study shows COVID-19 antibodies fade in recovered patients.
- Synairgen's coronavirus cure may prove more useful and timely than potential vaccines.
Rally, consolidation, and another rally? LON: SNG shares are trading around 190 pence, just under the 200 pence mark and weathering any potential downside correction or profit-taking. Synairgen made headlines – and saw its price quintupling within days – after announcing a promising cure for coronavirus.
Usage of its SNG001 drug lowered the chances of patients developing severe conditions by no less than 79%. The interferon beta medication proved highly efficient and the small British firm is already collaborating with larger ones to ramp up production.
After an increase, a fall tends to come, but there are reasons for LON: SNG's resilience. Apart from the relatively low valuation – especially when taking the magnitude of the problem into account – a cure may prove more timely than a vaccine.
Apart from the longer development time, immunization may prove temporary. According to a study published by the New England Journal of Medicine, antibodies in recovered patients fade away after an average of 73 days – less than three months.
Will buyers jump in?
Synairgen Stock Price
The chart is showing that after the leap, LON: SNG prices stabilized at a high plateau. The company is worth under £300 million, a low valuation. The 52-week high was 240 pence, but that was a temporary swing earlier this week.
It is essential to note that Synairgen made a long way from the 52-week low of 5.50 pence.
What could send the stock higher? Richard Marsen, CEO at Synairgen, said that "things are moving very quickly" when referring to the chances of its drug being approved for wide use. A seal from authorities and scaling up its production seem to keep to the next orally.
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