Why Is Infectious Disease Player Edesa Biotech Stock Soaring Today?

Edesa Biotech Inc EDSA has secured a commitment of up to C$23 million from the Government of Canada for a pivotal Phase 3 clinical study of the company's first-in-class therapeutic candidate.

Edesa's experimental drug, EB05 (paridiprubart), belongs to a class of therapies called Host-Directed Therapeutics (HDTs) designed to modulate the body's immune response when confronted with infectious diseases or even chemical agents. 

These therapies are agnostic to the causal agent and can be stockpiled preemptively for seasonal outbreaks and unexpected emergencies and threats.

Related: Edesa Biotech's COVID-19 Candidate Restraints Inflammation From Influenza, Other Pathogens In Preclinical Studies.

Edesa's current project builds on the government-supported Phase 2 study completed during the pandemic, which demonstrated that paridiprubart reduced mortality by 84% among critically ill patients with a severe form of respiratory disease called Acute Respiratory Distress Syndrome (ARDS). 

A parallel in vitro study at the University of Toronto also demonstrated recently that paridiprubart inhibits inflammation from influenza and other pathogens.

Edesa intends to use the SIF funding toward study expenses, including hospital and physician expenditures, and scale-up of commercial drug product should the development program be successful. 

Price Action: EDSA shares are up 81.50% at $4.90 on the last check Thursday.