Cocrystal Pharma Inc. (NASDAQ: COCP) is looking for another big climb after a 60% gain yesterday. The sudden rise in share price came because the company has announced that it has entered into a license agreement for the development of compounds that will deal with coronavirus and norovirus infections. COCP has been added to our list of “hot” stocks to watch.
In a press release issued early yesterday, Cocrystal announced that it had entered into a license agreement with the Kansas State University Research Foundation. The agreement relates to the development of a broad spectrum of proprietary spectrum designed to treat both coronavirus infections.
Cocrystal Pharma Agreement
As part of the agreement, COCP stated that it had been granted an exclusive right, a royalty right, and a license for certain anti-virus compounds. These compounds were created for human use and are covered by KSURF patents.
In the release, the COCP said it would research and develop these antiviral compounds. This work will include both clinical and preclinical development.
Overall, the license promotes the Cocrystal Pharma’s antiviral programs significantly. Ultimately, it provides potent compounds for further development.
Dr. Sam Lee, President of COCP, said they are delighted to contract with the Kansas State University Research Foundation to develop safe and effective antiviral therapies for these viruses.
This license agreement opens up many development opportunities for Cocrystal to expand the broad utility of our platforms to address significant viruses with unmet medical needs, in particular the COVID-19 coronary virus and norovirus.
There is a very urgent need to address the threat of public health that the coronary virus continues to present, and we believe that our proprietary drug discovery platform has the potential to do so. We intend to seek opportunities to collaborate in the promotion of these programs.
Overall, Cocrystal Pharma is a wonderful news release for the company and its investors. After all, the coronary virus is going around the world with a storm. With tens of thousands of cases certified worldwide, thousands of deaths, and no vaccine or treatment allowed for the condition, there is an urgent, unmet medical need here.
Pharma Stocks Are Very Risky
As I have mentioned in previous posts, early start-up companies are likely to build up options for these patients in the long term. A COCP is breaking into this opportunity.
There are some great opportunities in pharma stocks; however, it can also be one of the more risky sectors. Just because a stock like COCP is up 60% today, doesn’t mean it won’t tank tomorrow.
At the same time, global news of the coronavirus continues to drive markets down. The situation seems to be the market today in its red sea, and the virus is hitting hard on Italy.
Investors are focused on the Chinese coronavirus, a situation with which threatens to develop into a global pandemic. At least, yesterday, such an opportunity was announced by representatives of the Centers for Disease Control and Prevention at the US Department of Health. According to officials, the serious spread of the disease in the United States is a matter of time.
Nevertheless, the most important indicators of the American economy are still positive. Yesterday’s consumer confidence index rose for the third consecutive month, from 130.4 to 130.7 points, although it did not reach forecasts (132.0 points).
In his next comments, Fed Deputy Chairman Richard Clarida reiterated the regulator’s intention to keep rates at current levels and noted that it’s too early to speculate on the extent of the coronavirus impact on the economy.
Today, the market is waiting for US data on New Home Sales. The indicator can grow from 694K to 710K, which will support USD.
As coronavirus awareness continues and companies such as COCP continue to work to combat the virus, the market presents a variety of opportunities.