SNG Stock Price: Synairgen plc nearly quintuples after promising coronavirus cure, higher levels eyed
|- LON: SNG is trading around 166 pence, up some 355% on the day after hitting a high of 180 pence.
- Synairgen plc has announced promising results in a coronavirus cure.
- Investors are bullish and may push the stock further above, not waiting for more results.
LON: SNG has leaped from a multi-million-pound firm to one trading in the billions – amid a promising cure to coronavirus. Synairgen plc reported that its nebulizer treatment dramatically reduced the risk of developing a severe COVID-19 disease – 79% in its trial of the SNG001 drug.
The British pharma company's medication is a formulation of a naturally-occurring antiviral protein called interferon beta and it is administered by inhalation rather than by injection.
Investors are not waiting for a full peer-reviewed study – like that about to be published in The Lancet about AstraZeneca's COVID-19 vaccine, done in collaboration with the University of Oxford. Nevertheless, Synairgen's bullish results – patients were twice as likely to recover – imply fast-tracking by Prime Minister Boris Johnson's government, which is keen to throw money at any potential cure or vaccine.
Synairgen Stock Price
LON: SNG has hit a new 52-week high of 180 pence – which is also the highest since the firm was founded and floated in London in late 2004 – a 15 year high. The 52-week low is 5.5 pence. Support awaits at 73 pence, which was the high point in April. Synairgen began surging early in the year when the coronavirus crisis gripped the headlines.
Resistance is at the 200 pence level – a round number representing a high target. However, LON: SNG may suffer a pullback. amid profit-taking. Nevertheless, investors will likely continue pushing the still relatively low-valued company higher.
Broader stock markets are torn between hopes for medical solutions to the disease and its rising cases, especially in the US.
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