Here's why the Noxopharm (ASX:NOX) share price is surging 6% higher

Here's why the Noxopharm Ltd (ASX:NOX) share price is charging higher on Tuesday morning following the release of a positive announcement…

| More on:
Five stacked building blocks with green arrows, indicating rising inflation or share prices

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Noxopharm Ltd (ASX: NOX) share price has started the week on a positive note.

At the time of writing, the clinical-stage drug development company's shares are up 6% to 67 cents.

Why is the Noxopharm share price charging higher?

Investors have been buying Noxopharm's shares after it provided an update on its Veyonda product.

According to the release, the company has lodged an international patent application aimed at protecting the use of Veyonda in blocking the development of septic shock associated with infections such as COVID-19 and influenza viruses.

Veyonda is being developed as an anti-cancer drug that enhances the effectiveness of standard anticancer treatments.

The release notes that one of its anti-cancer actions is the blocking of a signalling pathway called STING that serves as trigger for an immune response and repair of damaged tissue. In some individuals, the STING response is inappropriately excessive, pushing the individual over into septic shock. Veyonda appears to be the first drug that blocks STING in the clinic.

With an estimated one person dying globally every 3 seconds from cancer and one every 3 seconds from septic shock, management notes that the commercial opportunity for Veyonda has just doubled. It feels this underlines the commercial importance of the recent patent lodgement.

What about COVID-19?

The company advised that "long COVID" symptoms, such as long-lasting fatigue, breathing problems, headaches, along with severe organ damage and death, are all outcomes associated with septic shock.

Septic shock currently is managed with supportive treatments including drugs and fluids to restore blood pressure, anti-inflammatories such as dexamethasone, and antibiotics/antivirals. However, Noxopharm notes that the key need, that of providing a reduction in cytokine levels in a safe and comprehensive manner, remains largely unmet.

As a result, it sees a significant opportunity for the Veyonda product in this market.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Gainers

Man with rocket wings which have flames coming out of them.
Share Gainers

Guess which ASX All Ords stock just rocketed 34% on strong earnings growth

Investors just sent this ASX All Ords stock surging 34%. Here’s what’s happening.

Read more »

A businessman looking at his digital tablet or strategy planning in hotel conference lobby. He is happy at achieving financial goals.
Share Gainers

Why Dimerix, Newmont, Regal Partners, and Titomic shares are storming higher

These shares are having a good finish to the week. Let's see why.

Read more »

Two happy excited friends in euphoria mood after winning in a bet with a smartphone in hand.
Share Gainers

Why Fortescue, Lynas, PEXA, and Regis Healthcare shares are charging higher

These shares are having a strong session on Thursday. But why?

Read more »

A young man talks tech on his phone while looking at a laptop. A financial graph is superimposed across the image.
Share Gainers

Why Capricorn Metals, Insignia, Perseus Mining, and Qoria shares are storming higher

These shares are having a strong session on Tuesday. But why?

Read more »

A man clenches his fists in excitement as gold coins fall from the sky.
Share Gainers

Why Amaero, AMP, Block, and South32 shares are racing higher today

These shares are starting the week on a positive note. But why?

Read more »

Ten happy friends leaping in the air outdoors.
Share Gainers

Here are the top 10 ASX 200 shares today

It was another momentous session for ASX shares this Friday.

Read more »

Overjoyed man celebrating success with yes gesture after getting some good news on mobile.
Share Gainers

Why BHP, Catalyst Metals, Mesoblast, and Pilbara Minerals shares are shooting higher

These shares are ending the week with a bang. But why?

Read more »

Doctor doing a telemedicine using laptop at a medical clinic
Healthcare Shares

The Mesoblast share price just rocketed 38%! Here's why

ASX investors just sent the Mesoblast share price up 38%. But why?

Read more »