[Featured Stock] Daewoong Pharmaceutical Proves 'COVID-19' Treatment Effect in Animal Efficacy Test... 'Surge'

[Asia Economy Reporter Yoo Hyun-seok] Daewoong Pharmaceutical is showing strong performance. It appears that the news confirming the efficacy of the new coronavirus disease (COVID-19) treatment 'DWRX2003 (active ingredient Niclosamide)' in animal efficacy tests has had an impact.

As of 11:59 AM on the 5th, Daewoong Pharmaceutical was trading at 126,500 KRW, up 15.00% (16,500 KRW) compared to the previous trading day. At the same time, Daewoong surged more than 24%.

Daewoong Pharmaceutical and its subsidiary Daewoong Therapeutics announced on the same day that the COVID-19 treatment 'DWRX2003' showed clear improvement effects on viral infection in animal efficacy tests. Daewoong Therapeutics, together with Chungbuk National University College of Medicine, conducted in vivo efficacy tests on ferrets, administering ‘DWRX2003’ to ferrets infected with the COVID-19 virus and comparing normal, virus-infected, and test groups respectively.

As a result, the virus-infected group continuously showed virus presence in nasal discharge and lungs up to 8 days post-infection, whereas the test group administered with ‘DWRX2003’ showed a significant reduction in viral titers in nasal discharge from day 4 post-infection compared to the control group. Notably, lung tissue autopsy and viral concentration measurements conducted on day 3 post-infection confirmed complete elimination of the virus in lung tissue.

Additionally, with the virus completely removed from lung tissue, secretion of inflammatory cytokines was suppressed, confirming an anti-inflammatory effect in lung tissue. It was confirmed that direct antiviral activity of the drug enabled removal of the infectious virus within lung tissue, as well as prevention of tissue inflammation caused by viral infection. Accordingly, plans are underway to develop this as a treatment that can cover mild, moderate, and severe COVID-19 infected patients in the future.

Meanwhile, in May, DS Investment & Securities evaluated Daewoong as a company possessing COVID-19 treatment candidate substances. Jeon Sang-yong, Head of Research Center at DS Investment & Securities, stated, “Daewoong is the only domestic company that holds both ‘Camostat Mesylate’ and ‘Niclosamide,’ the most potent candidate substances for existing COVID-19 treatments,” adding, “The company holds a 45% stake in Daewoong Pharmaceutical, which produces and sells ‘Hoistar tablets’ with ‘Camostat Mesylate’ as the main ingredient, and a 61% stake in Daewoong Therapeutics, which is conducting animal trials for ‘Niclosamide’ starting this month.”