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The Omicron variant of COVID-19 was identified last week and the stock of the company is up as much as 319%.
ADG20 will be effective against the new strain, according to Adagio.
Emergency use authorization for the drug is anticipated in the second half of the century.
On Tuesday, the stock soared as much as 68%, extending its three-day gain to a high of 319%, as investors bet that the ADG20 will offer protection against the Omicron variant of COVID-19.
The company said on Monday that it expects its antiviral to be effective against the new strain.
Chief Scientific Officer Laura Walker said that ADG20 will retain activity against Omicron due to the highly conserved and immuno recessive nature of the epitope.
If ADG20 is successful, it will be a relief to the world as concerns grow about the effectiveness of current vaccines against the latest variant. Moderna CEO Stéphane Bancel told the Financial Times on Tuesday that he expects the effectiveness of current vaccines to experience a material drop.
The FDA will approve the drug for emergency use in mid-2022. The company plans to have 4 million doses available for distribution over the next two years.
ADG20 was designed to combine breadth, potency and duration of protection against the disease for up to one year in a single injection. The CEO said that they did this anticipating that the disease would evolve and render some therapies obsolete.
Matthew Harrison of Morgan Stanley raised his price target on Adagio stock to $49 on Monday, as he expects the company's antibody to prove effective against Omicron.
The company went public in August at a valuation of nearly $2 billion, having priced its IPO at $17 per share. On Tuesday, the company's stock hit a record high of 78.22, but it lost some of it's value in Tuesday afternoon trades to about 1.5%.
Markets Insider.
Business Insider has an original article.
