Komipharm stocks hit the ceiling on Korea’s secondary bourse Kosdaq early Thursday, after the company said it applied for phase 2 and 3 clinical trials of its Panaphix drug for coronavirus as a potential treatment.

The company said it will issue further notice if it gains the Ministry of Food and Drug Safety’s approval for final phase clinical trials targeting 100 coronavirus-confirmed patients.

Investors should be aware that the possibility of any drug winning final commercialization approval from the MFDS is only about 10 percent, Komipharm cautioned.

Yet, the veterinary pharmaceutical company’s stocks closed at 17,550 won ($14.40) on Thursday, up 30 percent from the day before.

Komipharm says Panaphix is a cytokine storm inhibitor that restrains the overproduction of immune cells and their activating compounds, cytokines, whereby it deters virus infection-induced pneumonia.

The company said it seeks to expand the use of Panaphix to cover COVID-19 treatments through the proposed clinical trial.

By Lim Jeong-yeo (kaylalim@heraldcorp.com)