Why Auris Medical, CytoDyn and Prometheus Shares Are Moving Today

Auris Medical Holding Ltd. EARS, CytoDyn Inc. CYDY and Prometheus Biosciences, Inc. RXDX are among the biggest movers in the biopharma space Thursday.

‘Buy The Rumor' Moment For Auris: Auris, a clinical-stage biopharma developing therapies for neurotology, rhinology and allergy as well as CNS disorders, said it will provide a business update on its AM-301 that's being evaluated for protection against airborne viruses and allergens, on Tuesday.

Following the announcement, the company's management team is scheduled to host a conference call and webcast.

AM-301 is a drug-free nasal spray that is designed to reduce the risk of upper respiratory tract infections and alleviate allergic symptoms. This investigational asset is currently in preclinical development. The company has demonstrated potential protective effects of the compound in a SARS-CoV-2 assay, with a short contact between AM-301's key component and the virus suspension reducing the viral infectious load by up to 99%. The company had planned to move it to the clinics in the first quarter.

Auris was rallying 18.63% to $3.82.

CytoDyn's Chief Medical Officer Departs: CytoDyn shares are on a two-day sell-off amid a disclosure from the company regarding the departure of its chief medical officer.

In a briefly worded 8-K filing with the SEC, CytoDyn said the last date of employment of its CMO Mahboob Rahman was April 5. Rahman, a biopharma industry veteran, was drafted into the company only in Oct. 2020.

The company did not offer a reason for the departure. It did not name a replacement either.

The late-stage biopharma is developing a monoclonal antibody named leronlimab, targeting the CCR5 receptor, and it is being evaluated for multiple indications, including COVID-19.

After slipping 11.2% Wednesday, the stock is seen extending the losses. CytoDyn shares were pulling back 7.43% to $3.24.

Related Link: Attention Biotech Investors: Mark Your Calendar For April PDUFA Dates

Prometheus' IPO Quiet Period Expires: Prometheus, a precision medicine company that focuses on developing therapeutic and companion diagnostic products for the treatment of inflammatory bowel disease, recently offered its shares to the public.

The company sold 11.5 million shares in an initial public offering, priced at $19 per share, and raised gross proceeds of $218.5 million.

The IPO quiet period for Prometheus expired this week, paving the way for sell-side initiation of coverage of its shares. Stifel initiated coverage of the shares with a Buy rating and $25 price target and SVB Leerink analyst Thomas Smith initiated the stock with an Outperform rating and $34 price target.

Prometheus was advancing 13.61% to $22.04.