Shares of Faron Pharmaceuticals (LON: FARN) are gaining on Monday after the company said the US Department of Defense (DoD) has selected the HIBISCUS Study to receive $6.1 million of funding from the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
The HIBISCUS study is investigating the potential of Faron’s IV IFN beta-1a to treat COVID-19.
Its share price is currently trading 21.98% higher on Monday, at 338p, following Friday’s close at 278p.
Faron stated the $6.1 million funding support for HIBISCUS still requires final contracting between itself and DoD's designated military unit, the 59th Medical Wing of the US Air Force, and is under preparation.
The Finnish company has already established a working relationship with the 59th Medical Wing and US Army Institute of Surgical Research to explore the use of Traumakine for organ protection in combat wounds.
“IFN beta-1a has previously demonstrated a compelling argument as the body's first line of defence against viral infection,” commented Dr Markku Jalkanen, Faron’s CEO.
“Deficiency of either IFN beta or the activation of its receptor (IFNAR) have been associated with severe COVID-19 and poor outcome. This validation from the DoD represents important progress for both our science and intravenous IFN beta as a potential treatment for severe COVID-19 patients,” added Jalkenen.