Shares of Sareum Holdings Plc (LON: SAR) are up 491% this year largely due to the pharmaceutical company’s involvement in creating a drug to combat the most severe respiratory symptoms of COVID-19 and other viral infections.
The company recently received a £174,000 grant from the UK Research & Innovation (UKRI) to investigate the therapeutic potential of its SDC-1801 selective, small molecule TYK2/JAK1 kinase inhibitor to treat coronavirus.
John Reader, Sareum’s CEO said: “We are delighted that UKRI has indicated its conditional support for our programme to investigate the therapeutic potential of SDC-1801, our proprietary TYK2/JAK1 inhibitor, in severe phase [coronavirus]”
Some investors may be wondering whether they should buy Sareum shares given their rally this year. Well, I’d like to point out that Sareum does not yet have a drug that is ready being sold in the market yet, and we could see a major rally in the stock once such a drug hits the market.
However, it might take a while for the SDC-1801 drug candidate to go through clinical trials and get regulatory approval for human use; we could get a major rally on such news.
Investors interested in the stock should keep this in mind when deciding whether or not to buy the company’s shares.
Sareum share price