Appili Therapeutics Inc (OTCMKTS:APLIF) Stock Rockets 33% in a Month: But Why?

Appili Therapeutics Inc (OTCMKTS:APLIF) stock has been showing solid uptrend over the past trading session with a jump of over 33% in the past month. What’s driving the stock higher?

Market Action

In the previous trading session, APLIF stock gained 0.54% to $0.8244. A total of 102K shares traded for the session hands, above its average volume of 41k shares. The stock opened at $0.8602 and moved in a range of $0.7651 – 0.8612.

Key Trigger

Appili Therapeutics and AiPharma Announce Strategic Alliance and Equity Transaction

-Appili Therapeutics Inc. (TSX: APLI; OTCQX: APLIF) (the “Company” or “Appili”), a biopharmaceutical company focused on drug development for infectious diseases, and AiPharma Global Holdings LLC (“AiPharma”), a private pharmaceutical research, development and commercialization company, today announced a strategic alliance to advance the global development of Avigan®/Reeqonus™ (favipiravir), a broad-spectrum oral antiviral currently being evaluated by Appili and its global consortium of partners for the potential treatment and prevention of COVID-19, including in Appili’s Phase 3 COVID-19 treatment trial PRESECO (PREventing SEvere COVID-19) which completed enrollment last week.

Appili and AiPharma entered into a strategic equity transaction (the “Definitive Agreement”) to establish minority positions in each other’s businesses, further align their goals and participate in each other’s respective economic interests.

One of AiPharma’s portfolio companies is GRA, a 50-50 joint venture with Agility (KSE/DFM: AGLTY) and a member of the consortium focused on the global development, commercialization and distribution of Avigan/Reeqonus. The consortium, which also includes the original Avigan/Reeqonus developer, FUJIFILM Toyama Chemical Co. Ltd., has made Avigan/Reeqonus available in jurisdictions where it is authorized as it completes its Phase 3 clinical program and has realized significant and rapidly growing global product revenues since the start of the pandemic. Through its participation in the consortium advancing Avigan/Reeqonus worldwide, GRA is entitled to 50% of the net profits from the worldwide sales of Avigan/Reeqonus (outside of Japan, China and Russia; net of any profit shares paid to Appili).

Key Quote:

“COVID-19 continues to be an immense health threat with little relief in sight. The world needs safe and effective oral antivirals that can help alleviate the threat of COVID-19, and I believe Avigan/Reeqonus has the potential to change the trajectory of this pandemic,” said Armand Balboni, M.D., Ph.D., Chief Executive Officer of Appili Therapeutics. “This partnership will help us further streamline activities and move quickly following the PRESECO readout to key clinical, regulatory and commercial milestones.”

Trader Notes:

APLIF stock is trading above all the key moving averages with 50-day and 20-Day SMA stand at $0.6570 and $0.7377 respectively – signaling a strong momentum. Moreover, RSI stands at 64 – giving a neutral sign.