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AB Science Gains Chinese Patent for COVID-19 Treatment

AB Science announced its Chinese patent for masitinib in treating COVID-19 until April 2041. Following the news, shares surged 7.5%, reflecting investor confidence in its future prospects. The patent and collaboration with the University of Chicago could significantly impact the market.

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AI Rating:   7
AB Science SA has recently made a significant advancement by securing a Chinese patent for its leading drug, masitinib, in the treatment of COVID-19. This patent protects the company’s intellectual property until April 2041, providing a long-term competitive edge in the pharmaceutical market. Such a development is particularly noteworthy as masitinib is recognized for its potential as a broad antiviral agent, with preclinical data suggesting efficacy against SARS-CoV-2, even amid concerning variants.

**Patent Protection and Market Impact**
The newly granted patent from the Chinese Patent Office enhances AB Science’s portfolio, marking another critical step in its strategy to exploit the COVID-19 market. The additional protection could promote increased investment and interest from institutional investors, bolstering the company's stock price. Following the announcement, shares rose by approximately 7.5%, indicating an optimistic market reaction to the news.

**Collaboration with the University of Chicago**
The exclusive licensing agreement for collaborative research with the University of Chicago further strengthens AB Science’s position in the market. This partnership not only enhances the credibility of its product but also provides a royalty stream from net sales of any developed treatments. The projected 1% royalty on the first registered product, along with smaller royalties for subsequent products, could lead to positive cash flow should the product reach commercialization.

**Clinical Results and Future Outlook**
Recently communicated positive results from a phase 2 study evaluating masitinib in COVID-19 significantly bolster AB Science’s outlook. The reported anti-inflammatory activity of masitinib, as highlighted by Olivier Hermine, cements its potential utility in future pandemics, which should maintain investor interest. Prospects for further studies and potential commercialization lead to a favorable view from investors gearing for returns in the medium term.
Stocks:  ABSCF