Insights

PharmAust (ASX:PAA) share price soars 7% on positive update

The PharmAust Limited (ASX: PAA) share price is shooting upwards following an update on its antiviral program. Here is what the company said.
The post PharmAust (ASX:PAA) share price soars 7% on positive update appeared first on The Motley Fool Australia. –

medical asx share price represented by doctor giving thumbs up

The PharmAust Limited (ASX: PAA) share price is shooting upwards following an update on its antiviral program. In late afternoon trade, the PharmAust share price is trading for 11 cents apiece, up 7.1%.

What did PharmAust announce?

Investors are pushing PharmAust shares higher after taking in the company’s progress on antiviral activity against COVID-19.

In its announcement, PharmAust provided an update on its lead drug candidates as antiviral therapeutics. These include monepantel (MPL) and also monepantel sulfone (MPLS).

The company stated that data from extensive testing at Leiden University Medical Center (LUMC) has demonstrated antiviral activity in non-human primate systems. This follows two previous independent laboratories that conducted MPL’s antiviral activity in both primate and non-primate cell cultures mid-last year.

MPL and its metabolite MPLS are potent and safe inhibitor of the mTOR pathway. This is the pathway that influences cancer growth, neurodegenerative diseases, and viral infections. MPL has been evaluated in the human phase 1 trial and exhibited preliminary evidence of anticancer activity.

PharmAust noted that solubility issues of MPL in the in-vitro systems remain challenging. However, it has resolved solubility issues of the administration to patients through developing an MPL tablet dosage form.

When consumed, MPL is converted to MPLS in the body, representing the dominant form in a person’s plasma.

Principal investigator at LUMC, associate professor Martijn van Hemert commented:

There are indications for an antiviral effect in these assays, but solubility issues under the conditions required for cell-based screening complicate analysis. Additional experiments will now be performed on SARS-CoV-2 infected human lung cell lines

PharmAust Chief Scientific Officer, Dr Richard Mollard added:

Testing highly insoluble drugs such as MPL in established complex culture conditions is notoriously difficult. We look forward to updating the market as these programs continue.

PharmAust and LUMC will seek to move its antiviral development program to testing in human cells.

PharmAust share price snapshot

Over the past 12 months, the PharmAust share price has accelerated over 50% of its value. Most of the gains came from June 2020 when the company announced its preliminary COVID-19 results.

On valuation grounds, PharmAust presides a market capitalisation of around $33.2 million, with 316.7 million shares outstanding.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of February 15th 2021

More reading

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post PharmAust (ASX:PAA) share price soars 7% on positive update appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!