A Canadian company developing an experimental Ebola drug has seen its stock swing wildly in what one analyst describes as market overreaction to the latest headlines about the deadly outbreak.
Tuesday's drop followed a nearly 60-per-cent surge over the previous two trading sessions.
Tekmira announced last Thursday the
The outbreak has killed more than 1,000 people in
Kolbert said he sees "no relationship whatsoever" between the prospects for ZMapp and TKM-Ebola, as the two treatments take completely different approaches.
"However, just as the people were focused on Ebola and kind of drove Tekmira shares higher, now you're seeing selling in the stock. It's just volatility associated with a lot of I'd say retail buying of Ebola biodefence names," he said.
"It's a pendulum. It tends to overreact."
The statement makes no reference to the fact that currently, these experimental therapies are in limited supply.
On Monday, ZMapp's
That drug was given to two American relief workers who contracted Ebola in
It's unclear how much TKM-Ebola Tekmira has in stock, or how quickly manufacturing of the drug can be ramped up.
Tekmira says its drug, which targets the cells where the virus replicates, is the most advanced Ebola treatment option that's in development.
"We are pleased that the
Tekmira has a
Restrictions remain on testing the drug on healthy volunteers, but Murray said the company is "focused on an expedient resolution" on that matter.
In a research note last week, analysts with
"Bottom line, we've confirmed with the company this lifts the obstacle in case one seeks the drug for compassionate use and they do have supply of some drug intended for clinical trials. To meet the much larger demand of the broader outbreak, they would have to ramp up manufacturing, which could take months," they wrote.
"While we acknowledge there is the potential for (Tekmira) to land significant revenues due to its Ebola program, this should only be considered a long-term upside opportunity as visibility is very low and predicting what happens with pandemic outbreaks and government contracts can be risky."
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