RedHill Biopharma Ltd (RDHL)

[midastouch017]

Redhill

https://www.fool.com/investing/2021/01/26/these-2-coronavirus-stocks-could-soar-in-the-first/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article

Redhill Biopharma (NASDAQ:RDHL) specializes in gastrointestinal illnesses, but has broadened its work to include infectious diseases and oncology. The company has six programs in the pipeline, including two potential treatments for COVID-19. And one of those COVID-19 programs recently produced encouraging safety and efficacy data in a phase 2 trial.

The treatment candidate, opaganib, blocks the action of sphingosine kinase-2. This is an enzyme that plays a role in viral replication. Opaganib acts on the body's response rather than on the virus itself. An advantage is that potential viral mutations are unlikely to reduce such a treatment's efficacy. Another plus is that opaganib works as an anti-inflammatory agent and an anti-viral. This is significant because the challenges of treating COVID-19 include reducing viral load and preventing the body's inflammatory response from going into overdrive.

Redhill's trial involved 40 hospitalized patients requiring oxygen. It showed that more than 52% of patients no longer required oxygen support by day 14. That's compared to 22% of patients in the placebo group. The study also showed that more than 73% of treated patients were released from the hospital by day 14. The hospitals discharged only about 55% of patients in the control group by that point. The company expects a data readout from another trial -- a phase 2/3 trial of opaganib in patients with severe coronavirus pneumonia -- this quarter. That study is enrolling 270 patients across 30 sites worldwide.

Redhill's market capitalization of just $322 million leaves plenty of room for growth. If Wall Street's average forecast is right, the shares could climb 184% in the coming 12 months. Data from the opaganib trials will be the catalyst in the near term. Beyond that, potential sales growth of the company's three commercialized gastrointestinal products could offer reason for future gains.