Synairgen Share Price Forecast November 2021 – Time to Buy SNG?
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Shares of University spin-off and public limited company Synairgen (LSE: SNG) are in the red today, closing at £197 as of 29th October (17:54 GMT+1). The company recently released an update concerning the trials of its Covid-19 treatment. All of this has investors wondering whether it’s the right time to pick up SNG shares. The success of the company depends on the feasibility of its inhaled formulation of interferon beta, which is being trialed as a potential treatment for Covid-19.
Synairgen – Technical Analysis
From the financial statement provided by Synairgen, the company’s current market cap is at £396.643 million with total assets worth £57.364 million. The company achieved a net income of £-13.92 million in 2020, compared to £-3.88 million the year before. Its total liabilities as of 2020 are at £3.41 million compared to £1.82 million in 2019.
Moving average such as Exponential Moving Average (10)(186.8), Simple Moving Average (10)(186.4), Exponential Moving Average (20)(175.6), Simple Moving Average (20)(166.8) and Exponential Moving Average (30)(170.1) are indicating a buy action. Oscillators such as Relative Strength Index (14)(67.4), Stochastic %K (14, 3, 3)(68.2), Commodity Channel Index (20)(93.0), and Average Directional Index (14)(33.2) are neutral.
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Recent Developments
Synairgen has been testing SNG001 over the past two years. SNG001 is a formulation that contains the antiviral protein interferon beta and has been proven to treat the virus, improve lung function and aid in overall recovery. The treatment has already crossed Phase 1 and Phase 2 trials and is ready for Phase 3 trials to be undertaken on mild-to-moderate Covid-19 patients. The progression of trials is part of the US National Institute of Allergy and Infectious Diseases sponsored ACTIV-2 study, which is aimed at accelerating Covid-19 Therapeutic Inventions and Vaccines. The results of the Phase 3 study’s will be available by early 2022.
The Phase 3 trials act as a reinforcement for earlier SNG001 testing, as data shows that it can lead to substantial improvement in patients. The product is delivered directly to the lungs of the patients with the aim of helping natural antiviral defenses to prevent the virus from affecting. The success of this drug will also help in fighting other viruses, with many expecting it to play a major role in the next couple of years. This can ultimately be a significant product for the company, but it has to get the treatment to the market first.
Should You Buy SNG Shares?
While things certainly look bright for Synairgen, investors also have to consider a few risks. While SNG001 Phase 3 trials have begun, there is a risk that it may be ineffective in a larger group trial. On the other hand, even if it does succeed, it will take some time to properly launch the product in the market. One of the most prominent risks that SNG investors face is the challenge of sustaining the company for the time being. The company could run out of money if it if complications arise in the current set of trials or it takes longer than expected to get SNG001 to market.
The company may have to ask for additional money from shareholders, which may dilute existing ones. There is also no guarantee that the money would be raised, which also risks the company’s collapse. However, SNG001 could also be a blockbuster treatment for the company. Considering the latest updates and the factors mentioned above, the outlook of the company is improving. So investors interested in SNG could buy a speculative position in the company today.
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