CytoDyn not being considered for Warp Speed initiative - WSJ

Aug. 26, 2020 12:31 PM ETCytoDyn Inc. (CYDY)CYDYBy: Douglas W. House, SA News Editor420 Comments
  • According to a senior administration official, CytoDyn (OTCQB:CYDY -4.7%) is not being considered for inclusion in Operation Warp Speed, dashing enthusiasm of hopeful longs after IncellDx CEO Bruce Patterson, a former advisor to CytoDyn, told TV host Dr. Drew Pinsky that he thought the company would forward with the program which is aimed at fast-tracking COVID-19 treatments and vaccines.
  • The company has been heavily touting leronlimab for the treatment of patients with the coronavirus infection. An ongoing Phase 2 study missed the primary efficacy endpoint but achieved a secondary endpoint measured by an objective scale called NEWS2.
  • Shares have rallied 31% off the recent low of $2.76 on August 18 but this appears driven by recent news, including the above study, filing an application in the U.S. seeking emergency use authorization, an application in the UK seeking fast track approval and the advancement of a Phase 3 study (results expected in October).
  • SA Authors like leronlimab's prospects rating the company Bullish.
  • Update: In an interview posted on YouTube.com, CEO Nader Pourhassan took issue with the WSJ article saying the company never applied for inclusion in Operation Warp Speed and if it did, it wouldn't talk about. He questions the identity of the paper's Trump administration source who allegedly stated that it was not being considered for inclusion. He says investors should only buy CYDY stock if they believe in the company and its fundamentals. The SA article was based on the WSJ report. 

This was corrected on 08/27/2020 at 10:16 AM. Title corrected to reflect that the WSJ was the source for the story.

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