CytoDyn Inc. (OTCQB:CYDY) continues to be a target for short-sellers who continue to torpedo the bull thesis with weak ammunition and dreadful aim. Despite some critical hits, the bull juggernaut remains afloat and is still on course to commercialization. Captain and CEO Nader Pourhassan continues to rally the bulls with frequent updates and is willing to join the battle to fend-off the shorts. Unfortunately, the seas of the market are getting rough for COVID-19 plays, so CYDY investors should expect the shorts to continue to circle the ticker waiting for an Achilles heel to show as other COVID plays start to take on water. Despite the lingering threat, I believe recent turmoil has created an opportunity for CYDY to muster some investor support and stay afloat long enough to get Leronlimab through regulatory approval. The company’s flagship candidate, Leronlimab, is still in the COVID arena and the company is still deploying the monoclonal antibody against HIV, Cancer, GvHD, and NASH. If the company is able to get Leronlimab approved in HIV and gets the nod for emergency use authorization “EUA”, we could see tables turned against the bears. As a result, I still see CYDY worth a speculative investment at these prices.
I have been sitting on hands my over the past several months after banking some profits. However, I am contemplating on adding to my position in the coming weeks in anticipation the company will be firing out press releases like a Gatling Gun, so any positive news could catch some shorts off-guard.
Personally, I am looking forward to seeing some of the severe-to-critical data for COVID-19. I didn’t expect the mild-to-moderate data to reveal Leronlimab as the “cure” for COVID-19, and I don’t expect the severe-to-critical data to show it is the miracle everyone has been waiting for. However, I do anticipate the data to support Leronlimab’s ability to improve patient outcomes and that data will be sufficient to justify it receiving emergency use authorization for the United States. All the Leronlimab has to do is show similar results to Redemdesivir or convalescent plasma…which wasn’t all that impressive. In fact, Remdesivir failed to show a statistically significant improvement in mortality over placebo. I know that some studies have shown Remdesivir to help improve outcomes, but we have yet to see any new therapeutic that is the answer to this virus. Keep in mind, Leronlimab has an impressive safety profile that other COVID-19 therapies tend to lack, so, similar efficacy could make Leronlimab one of the best options in severe-to-critical patients. As a result, I will be looking to buy if Leronlimab’s numbers outperform Remdesivir, but I will wait to see the results before making a decision on if and/or when to click the buy button.
Overall, my bull thesis remains intact and I am still keeping to my “ditch list” of CytoDyn receiving FDA approval for Leronlimab in HIV in combination with HAART, and the company begins the process of uplisting to a major exchange by the end of 2021. If the company fails to complete both of those objectives by the beginning of 2022, I will liquidate the rest of my position until the company is able to address these concerns.