Traws Pharmaceutical Inc. (NASDAQ: TRAW), reported encouraging data on its tivoxavir-marboxil treatment for H5N1 bird influenza.
In a phase I clinical study, the investigational drug showed safety and tolerance and kept blood levels higher than EC90 over a period of more than 23 consecutive days.
In a press release issued on Monday, the biopharmaceutical company confirmed that “topline data” for an increased dose was still to be released.
Traws Pharma’s stock price is still down by more than half compared to its high for the year.
What is the significance of Traws Pharma?
In an animal model, Traws Pharmaceutical Inc’s experimental drug was found to be effective in treating H5N1 infection.
C. David Pauza, chief scientist at biotech said that the results are encouraging and will help in future clinical trials of tivoxavir-marboxil to treat H5N1 human influenza.
Traws Pharma’s stock has been rising this morning, as its update comes at a moment when the bird flu is resurfacing as an important concern.
California declared it an “emergency” last week, after finding an increased number of H5N1 infected dairy cows.
TRAW has now traded 300% higher than its low for the year to date in late November.
Traws’ board member leaves the company
Traws Pharmaceuticals has also been making news recently because Luba greenwood, a former member of the board, resigned on 16 .
According to the filing of the firm with the Securities & Exchange Commission, her decision was not based on a disagreement over the operations, policies or practices of the biopharmaceutical company.
Traws had no immediate plans to replace Luba at that time. This suggests that her departure will not have a significant impact on the company’s governance or strategic direction.
Traws Pharma is not attractive to income investors despite the recent rally. It does not pay dividends at this time.
Traws Pharma burns cash
Traws reported a net loss of $8.5 million in November for the third quarter, which translates into $8.81 per common share.
This was a significant increase from the $4.7 million, or $5.64 per share in last year.
At the end of the month, the biotech company had $5.4m in cash and cash equivalents as well as short-term investment. This is down from the $20.8m at the beginning of 2024.
Wall Street analysts aren’t particularly fond of Traws Pharmaceutical shares.
Robert LeBoyer, of Noble Financial who is currently covering them finds that they are fairly valued around $6.0.
He warns that the price could fall by more than 50% below current levels.
In the past, TRAW had a price that was akin to ‘penny stock.’ This means there is a possibility traders will manipulate its price Monday.
The question remains whether the country will be able to maintain the gains made in recent years.
The post Traws Pharmaceutical stock rises 200% after encouraging data on bird flu drugs may be updated as new information becomes available
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