Shares of Chimerix (CMRX) fell in excess of 10% during the trading session on Oct 8 following media reports pertaining to the death of Thomas Eric Duncan in the U.S. due to Ebola. Media reports stated that Duncan was treated with Chimerix’s anti-Ebola candidate, brincidofovir. Chimerix shares however recovered some lost ground to close the trading session on the day at $32.91, down 0.96%.
We remind investors that Chimerix shares had gained significantly earlier in the week following the FDA’s favorable decision on brincidofovir. Chimerix had stated that following requests from physicians, brincidofovir could be used for the potential treatment of patients affected with the dreaded virus. Brincidofovir had demonstrated in vitro activity against the Ebola virus.
Media reports stated that Duncan was treated with brincidofovir after the FDA verdict. However, Duncan still succumbed to the disease. We note that companies like Tekmira Pharmaceuticals Corp. (TKMR) and BioCryst Pharmaceuticals (BCRX) are also developing therapies to combat Ebola. Shares of both the companies gained on the news of their rival Chimerix’s brincidofovir failing to treat Ebola successfully.
Chimerix is actually evaluating the safety and efficacy of brincidofovir in a phase III study (AdVise) for the treatment of patients with adenovirus infection. Recently released preliminary results from the open-label pilot portion of the study revealed an improvement in the survival rate of patients.
Ebola has been wrecking havoc, claiming multiple lives, since its latest outbreak earlier this year in Africa. According to media reports, this is the worst outbreak since the disease first surfaced in 1976. We expect investor focus to remain on companies developing Ebola treatments, going forward.
Chimerix carries a Zacks Rank #4 (Sell). Medivation (MDVN) is a better-ranked health care stock sporting a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
To read this article on Zacks.com click here.
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
Be the first to comment