XBiotech. Never heard of them? Well, I mean before today. It was about a week ago that XBiotech (XBIT) announced that the firm had identified "True Human" antibodies that could possibly be used as a therapy in the fight against the SARS-CoV2 virus that causes the disease referred to as Covid-19. Through a collaborative effort with BioBridge Global, which is the parent organization of The South Texas Blood & Tissue Center, and QualTex laboratories, the firm discovered these antibodies.
BioBridge has used XBiotech's screening technology to identify donors who had been infected with this coronavirus with the intention of providing convalescent plasma as a means to treat patients suffering from severe cases of the illness.
Flash Forward
Today. Monday Morning. XBiotech announces that the Food and Drug Administration had issued an emergency use authorization, as you know, for the use of Covid-19 convalescent Plasma as a treatment for those currently suffering from an active infection. BioBridge Global provides blood products to hospitals using XBiotech's screen to identify "effective" plasma. BioBridge then uses that plasma to produce natural immunity in blood meant to treat Covid-19 patients in hospitals.
Remember, the preliminary findings that the FDA based its decision on to make use of convalescent plasma showed an improved survival rate 30 days out of 35% out of 70,000 patients treated over time. There has, as of yet, been no concerning negative safety issues connected to making use of such treatment.
The Chart
Yes, I am long the name. Very small. I bought just a few shares on spec early this morning. The shares took off almost immediately. I did not snare enough for an investment, so normally this would be a trade. May just hang on to it to see where it goes, just out of interest. Only one analyst even follows the name. There is no expectation for profitability, or lack thereof. The one projection for revenue for the current quarter is for $7 million, with $28 million for the full year.
Will that number have to change if this therapeutic becomes useful or perceived by the medical community as useful? Right now, Gilead Sciences' (GILD) Remdesivir is the only other game in town, really, outside of some steroid treatments that have seemed helpful. We all await data on monoclonal antibody treatments still in clinical trials being developed by the likes of Regeneron (REGN) and Eli Lilly (LLY) .
The shares of XBIT will likely crash through the 61.8% retracement level of the year's entire range after the bell rings. Do these shares get back to the 2020 highs that were reached back in January? If they do, I probably won't hold all of them that long. Remember, this is a trade.
