Tekmira Pharmaceuticals Corporation (NASDAQ:TKMR) stock tumbled as much as 22% on Tuesday as the frenzy over Ebola drug cooled. Tekmira is one of the few pharmaceutical companies developing treatments for the deadly Ebola virus. Its TKM-Ebola treatment is currently in the Phase-I clinical trials. The stock had soared a whopping 82% between Thursday and Monday, before falling big time on Tuesday.
Tekmira expected to report just $3.69 million in revenues
The Canadian pharmaceutical company will release its fiscal second-quarter results on Wednesday, August 13 at 5:00 p.m. ET. Though the stock has experienced immense volatility around Ebola speculation, Tekmira generates little revenue. Currently, only three research firms cover the stock. Maxim Group and Stifel both have Buy rating on the stock, while RBC Capital Markets has an Outperform rating.
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The the analysts on average expect the company to report 26 cents in Q2 losses on revenue of $3.69 million. In the first quarter this year, the company reported a loss of 91 cents while analysts were expecting a profit of 23 cents per share. Last Thursday, the U.S. FDA modified its full clinical hold on TKM-Ebola to a partial hold, fueling a rally in the stock.
in January, Tekmira launched a human clinical trial for its Ebola treatment in January, 2014. The stock skyrocketed to an all-time high of $33 in March as the clinical trials progressed. But FDA put that trial on hold in July after some patients experienced problematic immune responses during clinical trials. But the FDA’s latest move that the drug can be prescribed for people infected with Ebola virus.
Tekmira not the only company working on Ebola treatment
Notably, Tekmira is not the only company working on Ebola treatment. The Center for Disease Control and Prevention said in a statement that publicly-traded BioCryst Pharmaceuticals, Inc. (NASDAQ:BCRX) and NewLink Genetics Corp (NASDAQ:NLNK) have also received federal funding for their Ebola treatment candidates.
The deadly Ebola epidemic has claimed more than 1,000 lives, according to the World Health Organization.
Tekmira shares jumped 5.53% to $19.66 at 10:45 AM EDT on Wednesday.