Biotron share price rockets 38% on COVID trial results

Successfully treating COVID-19 is still in the sights of biotech researchers.

| More on:
A group of medical researchers stands side by side with each other wearing white coats in their research laboratory with scientific equipment in the background.

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

sdf

Key points

  • Shares in a small cap biotech company have closed 37.5% higher on Monday
  • The company reported successful animal trial results in treating COVID-19
  • Biotron has applied to conduct a human trial to further test its drug candidate

Those that believe that COVID-19 is yesterday's news should look at the Biotron Limited (ASX: BIT) share price today.

Shares in the small cap biotech jumped 37.5% to 9.9 cents each after reporting positive COVID-19 animal trial results today.

The company said that its lead clinical drug BIT225 protected mice that have SARS-CoV-2 from severe disease.

Bitotron share price jumps on more challenging test results

This test was trickier than an earlier one the company conducted. In the latest test, the mice were infected by SARS-CoV-2 up to 48 hours before being treated with BIT225.

In the earlier study, the mice were given BIT225 12 hours before being infected by SARS-CoV-2.

The second trial was more challenging as it had a higher hurdle to demonstrate the efficacy of the drug, according to Bitotron.

Why this animal trial matters

"The results are important as they provide key information that will assist in determining the dosing regimen for BIT225 in planned human clinical studies," said the company in its ASX statement.

"The results further extend the robust in vivo data package that shows statistically and clinically significant efficacy of BIT225 in both treatment and prevention in murine models of COVID-19."

Biotron's management believes the effectiveness of BIT225 to treat and prevent severe cases of the highly contagious disease sets it apart from other treatments.

In fact, Biotron claims that this characteristic is a requirement for successful product development in this therapeutic area.

Details of Biotron's latest mice trial

In all studies, BIT225 was tested in a human-adapted COVID-19 mouse model (K18-hACE2) that is routinely used to assess the ability of drugs to target SARS-CoV-2 and treat COVID-19 disease.

There were five mice in each of the pre-dose and post-dose groups. There was also a control group with the same number of mice.

In the groups that were treated with BIT225, all but one remained healthy and continued to gain weight as per age expectations through to Day 12 when the study was terminated. One of the five mice in the post-dose group died on Day 11 of the trial.

In the control group made up of untreated mice, all lost weight and died by day eight of the study. The company noted that there was less weight gain if BIT225 treatment was delayed. But the trend lines are statistically similar regardless of when the drug was used.

Next catalyst for the Biotron share price

BIT225 was tested in a human-adapted COVID-19 mouse model (K18-hACE2) that is routinely used to assess the ability of drugs to target SARS-CoV-2 and treat COVID-19 disease.

Bitotron has submitted a proposal to the US Food and Drug Administration to conduct a human clinical trial to assess the efficacy of BIT225 for the treatment of COVID-19.

The application was made under the Coronavirus Treatment Acceleration Program and Biotron's management is expecting a response soon.

Motley Fool contributor Brendon Lau has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. 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 Scott Phillips.

More on Share Gainers

Unsure man analysing data on laptop.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a disappointing end to a disappointing week for investors this Friday.

Read more »

Man drawing an upward line on a bar graph symbolising a rising share price.
Share Gainers

Why Betr, Centuria Capital, GR Engineering, and Mach7 shares are pushing higher

These shares are having a good finish to the week. But why?

Read more »

Ten happy friends leaping in the air outdoors.
Share Gainers

Here are the top 10 ASX 200 shares today

The ASX gave up an afternoon lead to close lower today.

Read more »

a young woman raises her hands in joyful celebration as she sits at her computer in a home environment.
Share Gainers

Why Clarity Pharmaceuticals, Kelsian, Life360, and Syrah shares are rising today

These shares are pushing higher on Thursday. But why?

Read more »

Man smiling on top of rocks with mountains in the background.
Share Gainers

Here are the top 10 ASX 200 shares today

Investors were in a nervous mood today.

Read more »

Three happy office workers cheer as they read about good financial news on a laptop.
Share Gainers

Why Beach Energy, Boss Energy, Cochlear, and Light & Wonder shares are pushing higher

These shares are having a good time on hump day. But why?

Read more »

A man looking at his laptop and thinking.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a disappointing Tuesday session for ASX investors today.

Read more »

A man looking at his laptop and thinking.
Share Gainers

Thinking of selling your CBA shares? This expert says you should hold on

CBA shares are up by about 80% since November 2023.

Read more »