ADGI stock rose more than 120% on December 16, 2021, after Jefferies said that data suggests its product is effective against the omicron variant.
Pre-prints suggest Adagio’s ADG20 may have use against omicron, says Jefferies
Jefferies analyst Michael Yee lowered the firm’s price target on Adagio Therapeutics (ADGI) to $46 from $60, but keeps a Buy rating on the shares, telling investors in a new note that two new pre-print publications from “respected” independent labs suggest that the company’s ADG20 retains neutralization activity against omicron and “could be similar” to GlaxoSmithKline (GSK) and Vir Biotechnology (VIR), whose management have said their monoclonal antibodies have activity. “Oddly, this is in contrast” to Adagio’s recent disclosure suggesting significant reduction in neutralization and it is unclear what is causing the diverging results, said Yee, who adds that while there is work that Adagio needs to do to confirm the new data, the data might suggest ADG20 has “utility against” the variant.
Adagio Therapeutics Reports Reduction in In Vitro Neutralizing Activity of ADG20 Against Omicron SARS-CoV-2 Variant
On December 14, 2021, Adagio Therapeutics, Inc., (Nasdaq: ADGI) a clinical-stage biopharmaceutical company focused on the discovery, development and commercialization of antibody-based solutions for infectious diseases with pandemic potential, today provided an update following external in vitro analyses to evaluate neutralizing activity of ADG20 against the Omicron SARS-CoV-2 variant. The in vitro data generated through both authentic and pseudovirus testing of the Omicron variant show a greater than 300-fold reduction in neutralizing activity of ADG20 against Omicron. Additional analyses are ongoing, and the company plans to engage with regulatory and government agencies to assess the role ADG20 can play for the prevention and treatment of COVID-19, particularly as the industry’s understanding of the epidemiology and impact of Omicron and potential new variants develops.
“Due to the highly conserved and immunorecessive nature of the epitope recognized by ADG20, we anticipated that ADG20 would retain neutralizing activity against Omicron, consistent with activity observed in in vitro models with all other known variants of concern,” said Tillman Gerngross, Ph.D., chief executive officer of Adagio. “While the individual mutations present in the Omicron receptor binding domain were not associated with escape from ADG20 in the context of an original strain of the virus, new data show that the combination of mutations present in the Omicron spike protein led to a reduction in ADG20 neutralization that was not suggested by prior data. The continued prevalence of the Delta variant in the U.S. and other countries, evolution of SARS-CoV-2 variants and potential future coronaviruses means a multitude of therapies and approaches are needed. With an expert team committed to advancing antibody solutions that combat this unprecedented pandemic and a strong balance sheetThe balance sheet is a snapshot of a company's financial position at a specific point in time. It shows the company's assets, liabilities, and equity., we’re conducting additional analyses to assess the optimal path forward with ADG20 as both a prophylactic and treatment option for COVID-19.”
ADG20 is an investigational monoclonal antibody (mAb) product candidate designed to provide broad and potent neutralizing activity against SARS-CoV-2, including variants of concern, for the prevention and treatment of COVID-19 with potential duration of protection for up to one year with a single injection. In previously disclosed in vitro studies, ADG20 retained activity against prior variants of concern including Alpha, Beta, Delta and Gamma. In addition, in vitro data demonstrated retained neutralizing activity of ADG20 against a diverse panel of circulating SARS-CoV-2 variants, including the Lambda, Mu and Delta plus variants. The safety and efficacy of ADG20 have not been established, and ADG20 is not authorized or approved for use in any country.
Adagio is currently evaluating ADG20 in global Phase 2/3 clinical trials for both the prevention and treatment of COVID-19. Based on the in vitro findings related to Omicron, Adagio plans to pause patient recruitment in its Phase 2/3 COVID-19 treatment trial at clinical sites in South Africa, where Omicron has emerged as the dominant variant. Adagio is evaluating next steps for its ADG20 program.
In vitro analyses were also conducted on ADG10, a second mAb in development, which showed minimal neutralizing activity against the Omicron variant in both authentic and pseudovirus neutralization assays.
📺 ADGI Stock Technical Analysis
The long and short term trends are both neutral. This gives a pretty neutral overall picture. ADGI is one of the lesser performing stocks in the Biotechnology industry. 100% of 625 stocks in the same industry do better. ADGI is currently trading near the lower end of its 52 week range, which is not a good sign because the S&P500 Index is trading near new 52 week highs at the moment. There is a support zone ranging from 6.34 to 6.36. This zone is formed by a combination of multiple trend lines in multiple time frames. The technical rating of ADGI is bad and it also does not present a quality setup at the moment. Price movement has been a little bit too volatile to find a nice entry and exit point. It is probably a good idea to wait for a consolidation first. Click here to sign up for email alerts on when ADGI stock is a good entry.