On Wednesday, Virpax Pharmaceuticals Inc. (NASDAQ:VRPX) shares soared more than 97% before pulling back later for a net intraday gain of 43%. The stock is now up more than 470% from its Monday close following Tuesday’s events.
Virpax said it received a written response from the US Food and Drug Administration (FDA) to its MMS019 anti-viral barrier product, paving the way for the development of the intranasal protective. According to preliminary studies, the product could also limit the transmission of viruses to others, boding well with the current market environment.
Anthony Mack, chairman, and CEO of Virpax Pharmaceuticals said:
We believe that the initial pathway to move forward with the development of MMS019 has been clarified. The pre-IND meeting provides an opportunity for open communication between the Sponsor and the FDA to discuss the IND development plan and to obtain the FDA’s guidance for clinical studies for the new drug candidate.
Should you buy Virpax Pharma shares in Q3 2021?
Virpax Pharma’s fortunes seem to be changing quickly following Tuesday’s FDA response to its MMS019 anti-viral barrier product. The FDA’s response to the pre-investigational new drug paves the way for Virpax to submit a New Drug Application (NDA) for the MMS019.
Therefore, it now sees a potential path to revenues after spending the last five years as a development stage company.
According to the press release, Virpax is considering submitting the NDA to the Office of Non-Prescription Drugs, allowing it to be used as a once-daily intranasal treatment to protect against “inhibition of viral replication of SARS-CoV-2 and influenza in animals.”
The VRPX daily trading volume jumped from a daily average of 2.3 million to nearly 165 million on Tuesday, before falling to 41.4 million on Wednesday.
Therefore, although the initial hype seems to be fading, the company appears to be moving closer to developing a product that could result in significant returns for many years.
Technical overview: VRPX stock price predictions for August 2021
Technically, Virpax Pharma shares seem to have recently spiked to a new historical high of about $36.00 per share. However, the stock price pulled back to $21.89 after the initial hype surrounding Tuesday’s news faded.
Therefore, investors can target a potential rebound at approximately $30.75 or higher at $36.11. The key support levels are $15.56 and $8.11.
Bottom line: why buy Virpax Pharma now?
Although Virpax shares have spiked significantly since the news about the FDA response broke on Tuesday, the stock price has since pulled back, creating an attractive entry opportunity.
The company is now moving closer to eventually launching the MMS019, which could yield significant returns. It may not be too late to buy.
The post Should you invest in Virpax Pharma as stock soars more than 40%? appeared first on Invezz.
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Motiur Rahman
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