Altimmune Inc. (NASDAQ: ALT) made some progress with its COVID-19 treatment on Monday after it announced some new funding for its trials. This new capital injection is expected to fully fund this trial.
The company announced that it was awarded $4.7 million from the U.S. Army Medical Research & Development Command (USAMRDC) to fund its Phase 1/2 clinical trial of T-COVID, an investigational intranasal immune modulator for the treatment of outpatients with early COVID-19.
Comparatively, $4.7 million is not that much for a company that boasts a market cap of nearly $250 million.
The competitive award was granted by USAMRDC in collaboration with the Medical Technology Enterprise Consortium biomedical technology consortium working in partnership with the U.S. Department of Defense. The award is expected to provide Altimmune sufficient funding to cover the entire cost of conducting this clinical trial.
As previously announced, patient enrollment in the T-COVID Phase 1/2 trial is expected to commence in the coming weeks, with data readout expected in the fourth quarter of 2020. If the Phase 1/2 clinical trial is successful, Altimmune plans to initiate a Phase 2/3 trial of T-COVID early next year and commence discussions with the FDA regarding a potential Emergency Use Authorization.
In preclinical animal studies, T-COVID modulated the innate immune response to decrease inflammation and significantly lower concentrations of IL-6 and other inflammatory cytokines in response to infection with respiratory viruses.
Altimmune stock traded up about 8% on Monday to $11.44, in a 52-week range of $1.51 to $12.74. The consensus price target is $13.00.