The share price of MediciNova, Inc. (MNOV) skyrocketed in the after-hour session on Tuesday, 9th March 2021. The share price increased by 105.11% in the after-hours sessions. Earlier in the normal trading session, the share price was also increased by 5.97% on Tuesday.
The reason behind the soaring stock price
The MNOV announced its partnership with the Biomedical Advanced Research and Development Authority (BARDA) on Tuesday, 9th March. BARDA is the part of the Office of the Assistant Secretary for Preparedness and Response at the U.S. Department of Health and Human Services. The BARDA purpose is to reuse MN-166 ibudilast, as a potential medical countermeasure (MCM) against chlorine gas-induced lung damage. The MN-166 ibudilast can be used to treat lung damage such as acute respiratory distress syndrome (ARDS) and acute lung injury (ALI).BARADA will be providing the finance for the studies of MN-166 and it is the first compound to receive BARDA’s financial assistance through the DRIVeReDIRECT program.
On this occasion, Chief Medical Officer of MediciNova, Inc. Kazuko Matsuda, M.D., Ph.D., M.P.H. said that the company is grateful for the opportunity to partner with BARDA, to use MN-166 as a treatment for the patients who suffered lungs injuries due to chemical agents such as chlorine. He further said that MN-166 has the potential to improve health outcomes and save lives.
What is MN-166
MN-166 is a small molecule compound that prevents macrophage migration inhibitory factor (MIF) and phosphodiesterase type-4 (PDE4) and inflammatory cytokines. It is used in the late treatment of diseases such as ALS (amyotrophic lateral sclerosis), progressive MS (multiple sclerosis), and DCM (degenerative cervical myelopathy), and also for glioblastoma. It is also used in Corona patients which were at risk of developing Acute respiratory distress syndromes (ARDS).
MediciNova, Inc. was founded in September 2000 with the funding of $10 million from Tanabe Seiyaku Company limited. It started its business in San Diego as a biopharmaceutical company. The company vision was acquiring and accelerating the global development and commercialization of innovative pharmaceutical products. The company is working with many other pharmaceutical companies to build a strong product portfolio. MediciNova first development was MN-001 and was licensed in 2002. In 2004 the company got $70.2 million in financing for developing more candidates.
In December 2006, MediciNova listed on the NASDAQ Global Market under the ticker symbol MNOV and after one year the company offered 1 million shares at $12 per share. The company has developed a strong financial and research reputation in the biomedical field.