Dimerix (ASX:DXB) share price jumps on COVID study update

The biopharma specialist is bringing its study to Australia.

The Dimerix Ltd (ASX: DXB) share price is gaining more field position in afternoon trade and is now changing hands at 28.5 cents.

That's an approximate 4% gain for the biopharmaceutical company today after it released a key update regarding its CLARITY 2.0 clinical trial regarding COVID-19.

Here are the details.

Two lab technicians wearing white coats discuss results they see on a computer screen.

Image source: Getty Images

Dimerix Phase 3 COVID-19 study to expand into Australia

Dimerix advised that it has entered into an agreement with the NHMRC Clinical Trials Centre at the University of Sydney to expand its CLARITY 2.0 study.

It's not uncommon to see large studies be conducted across different jurisdictions, as it enables a wider testing sample for more robust outcomes.

For instance, researchers can gauge results across a number of demographics, ethnicities, age groups, and locations in various countries to understand any inter-human variables in how a drug might work.

Dimerix's seamless feasibility/phase 3 clinical trial, which is examining the effect of the company's DMX-200 drug candidate in COVID-19 patients with respiratory complications, will commence recruitment of 600 patients across six sites in NSW, VIC and QLD upon regulatory approval.

Currently, the study is "already approved and open for recruitment in India", and is being led by Professor Meg Jardine, Director of the NHMRC Clinical Trials Centre.

If successful, the company claims that DMX-200 "would likely be effective against the different Covid-19 strain mutations based on its mechanism of action".

As border restrictions begin to ease and lockdown mandates begin to wind back in the coming months, active COVID-19 cases and hospitalisations are expected to rise, as has been the case in other countries when doing so.

The release notes that "it is anticipated that a significant portion of the population will remain susceptible to Covid-19 because they are not vaccinated or do not get an adequate protective response from the vaccines".

This, it claims, is a driving factor for the need for COVID-19 treatments – like DMX-200 – on top of vaccines within Australia.

What's next for Dimerix?

To fund the Australian arm of the CLARITY 2.0 study, Dimerix's balance sheet is the "strongest it has been in the company's history" after it received $24 million from a recent share purchase and placement plan.

It will use this cash to finance the suite of clinical programs surrounding DMX-200 and progress the company's other candidate program, DMX-700, towards development.

The former also includes a phase 3 trial for a rare kidney disorder known as FSGS, whilst the DMX-700 program is centred on chronic obstructive pulmonary disorder (COPD).

Today's gains are a welcomed reprieve for shareholders, having endured a 5% loss over the month in their Dimerix holdings.

Dimerix share price snapshot

The Dimerix share price has climbed 21% this year to date, ahead of many of its biopharmaceutical peers.

Despite this, it has only gained 5.5% in the past 12 months, well behind the S&P/ASX 200 index (ASX: XJO)'s return of around 18% in that time.

The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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