BIVI - Why Shares of BioVie Jumped This Week
2023-03-10 11:04:28 ET
Shares of clinical-stage biotech company BioVie (NASDAQ: BIVI) were up 19.2% for the week as of Friday morning, according to data provided by S&P Global Market Intelligence . The stock closed last week at $6.87 and rose to a high of $9.40 on Thursday. The company's shares have been climbing since last month . BioVie focuses on neurodegenerative and neurological diseases, including Alzheimer's and Parkinson's, and advanced liver disorders.
The driving force for this week's rise was BioVie's announcement on Monday that in a phase 2 trial, more Parkinson's disease (PD) patients treated with its NE3107 therapy experienced morning "on state" with levodopa withheld overnight, compared to those treated with their usual standard of care, plus a placebo. The finding is important because many PD patients awake with rigid muscles, or in an "off state." However, they are considered "on state" if they awaken with enough muscle control, allowing for better stability and movement.
The trial's favorable result is leading the company to launch a phase 3 potentially pivotal trial. The company doesn't have any marketed products or revenue, and it lost $15.6 million in the fourth quarter, a loss of $0.50 in earnings per share (EPS), compared to a loss of $5.4 million, an EPS loss of $0.22 in the same period last year. It also has only $45.7 million in cash, so the potential breakthrough for NE3107 is crucial. The therapy has also shown promise in a phase 2 trial to treat Alzheimer's, where patients saw a reversal of cognitive decline. The key for BioVie will be getting enough funding to continue its promising clinical trials.
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Why Shares of BioVie Jumped This Week