Why NRx Pharmaceuticals Stock Is Soaring Today

Shares of NRx Pharmaceuticals (NASDAQ: NRXP) were trading 70.1% higher as of 11:58 a.m. EDT on Thursday after the company announced that it had validated a formulation for COVID-19 drug candidate Zyesami that provides at least one year of stability. NRx also said that it has "achieved a 30-to-50 fold increase" in the manufactured lot size of the drug.

Investors were obviously excited by NRx's news -- but why was the biotech company's update so well received?

Earlier formulations of Zyesami were only stable for a few weeks. That held the potential to create major headaches for hospitals since they wouldn't be able to keep much inventory of the drug in stock. Also, NRx's initially small manufacturing lot size meant higher production costs.

Source Fool.com