COCP Stock: Coronavirus Drug Licensing and $11 Million Direct Offering
COCP stock took off early this week and investors are keeping a close watch. However, why did this happen to begin with?
Cocrystal Pharma (Nasdaq: COCP) announced a licensing agreement with the Kansas State University Research Foundation (KSURF) for coronavirus drug candidates. With rising concerns over the virus, Cocrystal is looking to progress its research with preclinical and clinical testing.
Moreover, it announced an $11 million registered direct offering priced at-the-market. Several “institutional investors” are in agreement to purchase 8,461,540 shares of its common stock at a price of $1.30 per share. The direct offering expects to close on or around March 2, 2020.
Why is COCP Stock Skyrocketing?
The licensing agreement is the key to the recent rise in stock price. In fact, this opens up many development opportunities for the company.
According to the agreement, Cocrystal now has exclusive, royalty-bearing rights. It has licenses to specific antiviral compounds for the treatment of COVID-19 coronavirus and norovirus.
“There is an urgent demand to address the public health threat that the coronavirus continues to present,” Cocrystal president Dr. Sam Lee said. “We believe that our proprietary drug discovery platform has the capability to do just that. We intend to seek opportunities for collaborations as we advance these programs.”
With this news, COCP stock was up as high as 203%. And shares reached $2.37 the next day.
This is even more interesting considering the recent market drop. It’s been the worst week since the financial crisis in 2008. The Dow has dropped close to 10% due to coronavirus concerns in the U.S.
These concerns are driving the stock market down this week. However, Cocrystal is on the rise as it’s a step ahead in the race to develop treatment options for the virus.
Its original spike in share price put investors on watch. But, the stock has since fallen to $1.77 at closing on February 26th. That’s still a massive increase from the original price of $0.78 a share two days earlier.
What’s Next for Cocrystal Pharma?
The company’s press release tells you a lot about its near future. It will focus on researching and developing antiviral compounds for coronavirus. With KSURF’s patents, Cocrystal now has access to more potent compounds that will advance its antiviral programs.
Its technology develops compounds that target enzymes that are important to viral replication. Outside of the coronavirus, Cocrystal is also working to develop antiviral drugs for hepatitis C, influenza and norovirus.
It’s currently in the preclinical stage and working towards clinical testing. While expectations and projections can change, COCP stock is one to watch during the coronavirus scare.
Investing in Biotech Stocks
Investors are considering biotech stocks due to the coronavirus outbreak. Everyone is looking for the company that will produce the first big breakthrough in treatment.
However, coronavirus outbreak stocks are crashing as well. Now is the time to be vigilant as an investor. To learn how the coronavirus is affecting the stock market, sign up for our daily e-letter below. Our experts provide tips for you to find the hidden gems in the market.
The coronavirus is making an impact across the globe and the market is responding as fears begin to rise. Therefore, continue to watch COCP stock in the coming weeks as it gains traction in antiviral development.
About Corey Mann
Corey Mann is the Content Manager of Investment U. He has more than 10 years of experience as a journalist and content creator. Since 2012, Corey’s work has been featured in major publications such as The Virginian-Pilot, The Washington Post, CNN, MSNBC and more. When Corey isn’t focusing on Investment U, he enjoys traveling with his wife, going to Yankees games and spending time with his family.
