VERU - Veru stock gains ~20% premarket as potential COVID approvals overshadow Q2 results miss

Shares of Veru ( NASDAQ: VERU ) gained 20.4% to $14.17 in Thursday premarket trading, as investors looked past the company's Q3 results miss and focused on the potential upside from prospective emergency use approvals for its COVID-19 treatment sabizabulin.

Miami, Fla.-based VERU develops medicines to treat COVID and other viral and respiratory distress-related diseases and for the management of breast and prostate cancers.

VERU posted Q3 GAAP EPS of -$0.28 which missed estimates by $0.12 . Its Q2 revenue of $9.6M fell 45.6% Y/Y and missed expectations by $7.48M .

However, VERU CEO Mitchell Steiner in the earnings report said that, with a surge in COVID cases expected for the fall and winter seasons, a potential emergency use nod for sabizabulin would be a tailwind.

"Unfortunately, the death rate in hospitalized patients with moderate to severe COVID-19 who are at risk for ARDS remains unacceptably high with current standard of care," Steiner said.

“We expect to have significant near-term revenue from sabizabulin for the treatment of hospitalized COVID-19 patients at high risk for (acute respiratory distress sydrome), if the EUA is granted by the U.S. FDA," the CEO added.

The company submitted its application for an emergency use nod to the FDA in June, while UK's drug regulator has said that sabizabulin is eligible for an expedited review .

Research analysts at Jefferies and Oppenheimer have predicted that the FDA would grant an emergency use approval.

For further details see: