Todos Medical (OTCMKTS: TOMDF) and CytoDyn Inc. (OTCMKTS: CYDY) could envision a pretty good week ahead of them. in a recent article there have been a lot of comments about leronlimab and Tollovir. In the article, he broke down the mechanism of action of Molnupiravir, which made headlines on Friday, which almost single-handedly pushed the market up. The sale of both CYDY and TOMDF was likely due to investor rationalization that there is now a silver bullet to treat COVID-19 early; it was therefore time to cut Covid therapies because they will not be necessary. Over the weekend, it became clear that Molnupiravir is not a savior, let alone a quick fix, and that the road to approval is still difficult given the campaign to continue vaccinations. It has also become clearer that Leronlimab and Tollovir may really have a better solution than a vaccine for the entire spectrum of the disease.
Merck (NYSE: MRK) is expected to be under pressure on Monday as the euphoria begins to wear off and reporters start to dig in and ask questions. Likewise, vaccine stocks like Moderna (NASDAQ: MRNA), Pfizer (NYSE: PFE), BioNTech (NASDAQ: BNTX), Johnson & Johnson (NYSE: JNJ), Vir Technology (NYSE: VIR) and Novamax (NASDAQ: NVAX) are expected to rebound. The key points that have been discovered are that molnupiravir is intended for a very limited patient population. It’s not for the masses, but that’s precisely what investors assumed when the news broke. Many did not read the fine print that the drug was intended for unvaccinated people, who happen to be a declining population and people with at least one underlying disease. Other antivirals like Pfizer’s oral antiviral are designing the same type of exclusionary clinical trial.
The article has received over 35,000 visits at the time of writing and has been the top contributing article for 2 consecutive days. Many people have seen that Merck’s drug has a serious mutagenicity problem. It is not a good idea to take Molnupiravir if you are pregnant or if you are a man having sex. This point was clearly of shock value because who in his right mind would be having sex while he has COVID-19. The rest of the content was there. There are two biotechnologies that appear to be able to address the full spectrum of the disease, so this paired trade of CYDY and TOMDF is a good investment thesis if you think the vaccination strategy alone is flawed and the therapeutic will play an important role in getting out of the pandemic.
There are still a lot of risks with these two names. CytoDyn has come under pressure due to a group of disgruntled investors called the 13-Ds who want to move the direction and of course the shorts ringing the InvestorsHub bulletin board. There is a key hearing on October 6 that will determine whether or not the company should accept the 13-D proxy group vote. CYDY appears to be in a dominant position because he is of course the incumbent, but because he also made the 13-D group admit that he did not follow the rules and is misleading investors. This one sounds like an easy call for investors who want to put on their lawyer hats. “Your honor, I broke the rules but I now look after the best interests of the shareholders, not mine” will be the argument of the 13-D group. Then the company will say that 13-D broke the rules and if they choose to follow the rules in the future, they can apply again next year. There have been many missed deadlines like the BLA filing and the Revolutionary Therapy (BTD) designation, by management, which have put investors’ patience to the test. If any of CytoDyn’s initiatives like the Philippines or a solid recruiting in the trial in Brazil were to be successful, the action should see a mega rally.
Todos has been subjected to strong structural pressures. There was a big institutional seller who pulled out and capped the share price. A finance and lock-in deal was put in place last week that didn’t have much success for the market price above $ 0.0599, but the big bids on TOMDF are gone, which means that the low prices are due to retail investor fatigue or the news of molnupiravir instead of the actual dilution. If this advertisement over the weekend were to be successful, on Monday TOMDF could be on the verge of an epic run because as a COVID-10 exhibit they are the only company that has an antiviral for the people now. . The ZeroHedge article reported that the drug in development is for all intents and purposes the same as the nutraceutical that can be purchased from www.mytellovid.com. The company should also give some advice on their clinical trial. TOMDF was also in the news. Their CEO, Gerald Commissiong has been called an expert with a number of recent interviews this includes FOX Business, and may be called upon to advise on molnupiravir.
From a technical standpoint, both stocks are ripe for a rebound. The 20-day moving average on TOMDF held steady and rebounded well. Then CYDY retraced 32% from the high which means it is also ripe to rebound. In the absence of funding pressure in either of these actions, a good retail push could trigger a short hedging rally for the short bet on the end of Covid. It’s very reasonable for news to capture all eyeballs on this story to arrive on Monday.
Besides these well-known names, other small-cap companies working on COVID-19 may finally start to find deals. Next to CYDY, Ampio Pharmaceuticals (NASDAQ: AMPE) has one of the most promising drugs to treat the cytokine storm. In their phase 1 study, they showed a 78% reduction mortality compared to standard of care. They are currently initiating a Phase 2 trial of Inhaled Ampion in critical COVID-19 patients. Organicel Regnerative Medicine (OTCMKTS: BPSR) Uses Its Zofin To Treat Long-Haul People And Is Expected To Unveil Its Soon clinical test. First Wave BioPharma (NASDAQ: FWBI) is screening for its Phase 2b using Niclosamide to treat gastrointestinal problems resulting from a concentration of the COVID-19 virus in the intestine. He should announce additional sites and any adjustments to the protocol. This stock is heavily oversold after a botched stock in a press release that grossly overestimated the cost of acquiring their core asset. Therapeutic Solutions International (OTCMKTS: TSOI) is another stock in a strong downtrend with a slight uptick at support level. They have a nutraceutical that helps modulate Natural Killer cells through the release of IL-2
CYDY and TOMDF both seem to be part of the therapeutic conversation that has surfaced after a deafening message over the past 6 months that only vaccination can save us and that this is an ‘unvaccinated pandemic’. from Washington State Monitoring report health data used to show breakthrough infections as a percentage of vaccine recipients and are no longer tracked for fear of sending the wrong message. This censorship has not gone unnoticed and the media are starting to talk about it and ask more difficult questions like Sara eisen at CNBC. This fundamental movement for therapeutics could inaugurate a new renaissance in therapy. There is a tremendous opportunity to return to COVID-19 therapy. We’ll be updating CYDY and TOMDF, so be sure to subscribe to Microcapdaily so you know what’s up with both.