GlaxoSmithKline's Covid treatment partner, Vir Biotechnology, will join the S&P SmallCap 600 next week, according to a report that sent Vir stock flying.
Vir will replace Matador Resources, an energy company, according to a news release. The change will be effective Monday.
In response, Vir stock gained 14.8% and ended the regular session on today's stock market at 25.91.
Vir Stock: New Omicron Struggles
The news helped shares reverse course after the Food and Drug Administration, last week, suspended use of Vir and Glaxo's monoclonal antibody, sotrovimab, in regions where a new variant is likely to be dominant.
Sotrovimab isn't the first monoclonal antibody to struggle amid omicron's rise. Previously, the FDA said antibody cocktails from Eli Lilly and Regeneron Pharmaceuticals shouldn't be used in cases where omicron is suspected. Sotrovimab was still effective against omicron, but omicron's spinoff, called B.A. 2, is more elusive.
Now, Vir and Glaxo say they are planning to ask the FDA to sign off on a higher dose of sotrovimab, which they believe is likely to handle B.A. 2 infections. Still, Vir stock skidded 14% on the news. Meanwhile, the FDA recently authorized Lilly's new monoclonal antibody, bebtelovimab. Lilly believes it retains activity against omicron.
On Wednesday, Vir shares climbed closer to their 50-day moving average, MarketSmith.com shows. But Vir stock still has a Relative Strength Rating of 7 out of a best-possible 99, according to IBD Digital. Shares have struggled following the launch of oral antivirals from Pfizer and Merck.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
