Virios Therapeutics, Inc. (NASDAQ: VIRI), a biotechnology company focused on advancing groundbreaking antiviral treatments for chronic conditions like fibromyalgia and Long-COVID, has experienced significant momentum over the past six months. At its peak, the company’s stock surged by over 600%. While recent market fluctuations have caused a dip from these record highs, Virios is once again capturing the spotlight. In the following sections, we’ll explore the latest developments in more detail.

Before we dive into the 18% gain during intraday trading, let’s lay additional context with a synopsis of the latest corporate update announced August 10th, 2023.
Corporate Update:
One of the key highlights is that the Food & Drug Administration (FDA) has reviewed the company’s chronic toxicology program for IMC-1, which is aimed at treating fibromyalgia, and has deemed the program’s studies sufficient to support the safety of IMC-1 at the proposed dosage for chronic use.
The company’s plans for the near future involve initiating a pharmacokinetic and food effect study (“pK”) this year. Concurrently, they will be submitting a final Phase 3 program outline and associated Phase 3 study protocols to the FDA for review. Following the pK study, their goal is to commence enrolment in the first fibromyalgia Phase 3 safety and efficacy study in mid-2024.
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Additionally, Virios Therapeutics recently completed an exploratory, open-label, Long-COVID proof of concept study for IMC-2, a fixed combination of valacyclovir and celecoxib. They intend to sponsor a second investigator-initiated study with the Bateman Horne Center, similar to the initial proof of concept study, in the coming fall. They are also planning to engage with the FDA in the second half of 2023 to discuss advancing IMC-2 into Phase 2 development as a potential treatment for Long-COVID symptoms.
Greg Duncan, Chairman and CEO of Virios Therapeutics, expressed optimism about expanding their pipeline and progressing IMC-1 into Phase 3 development for fibromyalgia, as well as advancing IMC-2 into Phase 2 development for Long-COVID. He emphasized the company’s collaboration with the FDA to chart the path forward for these promising programs.
In terms of financial performance, research and development expenses for the second quarter of 2023 were reported at $0.6 million, a decrease from $2.4 million in the same period in 2022. This reduction was driven by lower expenses related to human clinical trials and animal toxicology studies, partially offset by an increase in drug development and manufacturing costs. General and administrative expenses for the second quarter of 2023 were $0.9 million, down from $1.3 million in the second quarter of 2022.
The net loss for the second quarter of 2023 amounted to $1.4 million, with basic and diluted net loss per share at $0.08. This represents an improvement from the second quarter of 2022, which reported a net loss of $3.7 million, with basic and diluted net loss per share at $0.44.
As of June 30, 2023, Virios Therapeutics’ cash balance stood at $4.6 million. Additionally, in July 2023, the company entered into a Credit on DemandTM Sales Agreement with JonesTrading Institutional Services LLC. Virios Therapeutics believes that its cash balance as of June 30, 2023, combined with the additional $1.4 million raised through the Sales Agreement after that date, will be sufficient to cover operating expenses and capital requirements for at least the next 12 months.
What Happened:
Through extensive research on social media platforms like Twitter, we’ve uncovered a prominent financial influencer known as @FrankieBstock, who seems to be a passionate shareholder advocate of Virios. He has brought attention to a wealth of exciting updates that might have otherwise gone unnoticed.
In addition to insider purchases, the stock has garnered significant attention larger institutions as more prominent funds with continue to increase existing positions while others initiate entirely new investments.
When insiders (such as company executives, directors, and employees) and institutional investors (like mutual funds, hedge funds, and pension funds) start buying a stock in significant quantities, it often sends positive signals to the market. Here’s what it typically means:
1. Confidence in Future Prospects: Insider and institutional buying suggests that these individuals or entities, who often have an in-depth understanding of the company’s operations, believe in its future growth and profitability. Their investment signifies confidence that the stock’s value will increase over time.
2. Alignment of Interests: When insiders buy company stock, it aligns their interests with those of shareholders. They have a vested interest in the company’s success, as their wealth is tied to the stock’s performance.
3. Positive Signal to Investors: Such buying activity can be seen as a positive signal to other investors, indicating that those with inside knowledge about the company believe it’s undervalued or poised for growth.
4. Improved Market Sentiment: Insider and institutional buying can boost market sentiment and lead to increased demand for the stock, potentially driving its price higher.
5. Increased Liquidity: Institutions often bring substantial financial resources to the market, increasing liquidity for the stock. This liquidity can make it easier for other investors to buy and sell shares.
However it’s important to note that this is not always a guarantee. While Insider and institutional buying is a positive sign, it does not necessarily mean the stock will continue perform well. Market conditions, economic factors, and other variables can influence stock prices.
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