Mar 22, 2023
Anti-Fungus Stock Surges Amid Worries Over Drug-Resistant Strain
(Bloomberg) -- Scynexis Inc., a pharmaceutical company that develops antifungal medicines, notched its largest two-day surge ever on Wednesday following a report of the increasing threat of a drug-resistant fungus spreading in the US.
Shares have jumped 74% over the last two days after touching a record low on Friday. The New Jersey-based company closed at $2.00 a share, up about 28% on Wednesday after gaining more than 35% the day before.
The rally was sparked by a Centers for Disease Control and Prevention report on Monday that said clinical cases of Candida auris, a fungus considered an urgent antimicrobial resistance threat, rose 209% from 2019 to 2021, and saw an especially dramatic uptick during the Covid pandemic.
Scynexis is worth looking at amid Candida auris spread because of its antifungal drug Ibrexafungerp, Cantor Fitzgerald analyst Louise Chen wrote in a Tuesday note.
“The rapid rise and geographic spread of cases are concerning and emphasize the need for a new effective treatment,” she wrote. Scynexis’s market capitalization was roughly $65 million as of Wednesday’s close.
Cantor reiterated its overweight ratings on Scynexis and Cidara Therapeutics Inc., another pharmaceutical company that makes antifungals, saying it sees potentially positive catalysts for both in the next 12 to 18 months.
Shares of Cidara shed 4% Wednesday, but are up 151% year-to-date through Wednesday’s close.
(Updates to market close throughout.)
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