Please ensure Javascript is enabled for purposes of website accessibility

Why BioCryst Pharmaceuticals Stock Is Jumping Again Today

By Keith Speights - Jan 27, 2020 at 3:09PM

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

Rising worries about a deadly virus outbreak are causing the biotech stock to move even higher than it did last week.

What happened

Shares of BioCryst Pharmaceuticals (BCRX 5.80%) were jumping 15.4% higher as of 3:21 p.m. EST on Monday. Today's big gain, like BioCryst's major move last week, stemmed from rising fears about the spread of the coronavirus that first appeared in China but has now infected several people in the U.S.

So what

The logic behind the spikes for BioCryst and several other biotech stocks is that these companies could have significant opportunities if they're successful in developing vaccines for the worrisome coronavirus strain. With reports over the weekend that more people in the U.S. and in other countries have been infected by the virus, drugmakers are scrambling to speed up their development of antiviral drugs and vaccines.

Healthcare professional holding a syringe

Image source: Getty Images.

BioCryst already has one drug being evaluated in clinical testing that could be promising. Galidesivir is in a phase 1 clinical study for treating several types of viruses, including the coronavirus. 

But there's a lot of work to be done before any drug or vaccine can be proven to be both effective and safe in treating the coronavirus strain that has raised concerns across the world. And there's no guarantee that BioCryst will be the leader in the race.

Now what

Investors will want to closely monitor the progress that BioCryst and other companies make with their programs targeting the coronavirus. Keep in mind, though, that the current fears could fade away if the spread of the virus slows and there are relatively few deaths. In the meantime, the biggest thing to watch with BioCryst is the pending FDA approval decision for the biotech's lead candidate berotralstat in preventing attacks of hereditary angioedema (HAE).

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

BioCryst Pharmaceuticals, Inc. Stock Quote
BioCryst Pharmaceuticals, Inc.
$10.76 (5.80%) $0.59

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 06/26/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.