Shares of Tekmira Pharmaceuticals Corporation NASDAQ:TKMR are trending higher once again. The stock soared a staggering 45% on Friday after the U.S. FDA loosened a hold on the company’s Ebola treatment that is still in the development pipeline. Tekmira Pharmaceuticals Corporation NASDAQ:TKMR shares rose another 11.74% to $23.13 on Monday amid speculations that the company may land significant contracts as the Ebola epidemic continues to spread.

Tekmira Pharmaceuticals Corporation Stock

Tekmira’s drug could be considered as an option in Africa

On Thursday, the U.S. FDA confirmed that it has modified the full clinical hold on the TKM-Ebola to a partial clinical hold. That means the treatment can now be used to treat patients infected with Ebola virus. RBC Capital Markets analyst Michael J. Yee said in a research note that the FDA has acknowledged the urgent need.

FDA’s move suggests that the TKM-Ebola could be considered as an option in Africa. The treatment could also be used in the U.S. if the epidemic were to spread further. Tekmira’s drug is the only Ebola drug that has been tested on a few healthy humans. Most other treatments have so far been tested only in animals. The TKM-Ebola is in Phase I clinical trials.

Tekmira Pharmaceuticals Corporation NASDAQ:TKMR officials confirmed to RBC Capital Markets that if someone seeks the drug for compassionate use, the company will have to supply a portion of the drug intended for clinical trials. Yee said the Canadian company will have to ramp up manufacturing if there is a much greater demand due to a broader outbreak.

Tekmira is still an inexpensive small-cap stock

Ebola has claimed more than 1,000 lives in Africa. It’s quite surprising that the first Ebola virus outbreak occurred in 1976, but little has been done in the last 38-years to defend against the disease. The latest outbreak in Africa has shown how unprepared the advanced countries are to protect thousands of lives. Given the circumstances, the FDA is aware of the risk/benefit.

RBC Capital Markets has an Outperform rating on the stock. The research firm said that its thesis was not based on just Ebola. RBC believes Tekmira Pharmaceuticals Corporation NASDAQ:TKMR is an inexpensive small-cap stock that has significant upside potential compared to the downside risk. The research firm’s thesis is based on multiple programs such as Ebola, cancer, Hepatitis-B and many more.