The onslaught of the omicron variant of the coronavirus threw biotech company Adagio Therapeutics (ADGI) into troubled waters. On Tuesday, December 14, in vitro data showed a significant reduction in the effectiveness of Adagio’s ADG20 (treatment and prevention therapy for COVID-19) against omicron.
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Indeed, ADGI stock plummeted 78.81% at the end of yesterday’s trading session, followed by a further 7.3% in the pre-market trading hours at the last check. The decline was more pronounced because the company had earlier been too confident about the prowess of ADG20 against any mutation found in omnicron.
Last month, the company’s shares had surged after Adagio announced that the omicron variant wouldn’t withstand ADG20, citing various lab tests that proved it could effectively treat the alpha, beta, delta, gamma, lambda, mu, and delta plus variants of the virus.
The Wall Street analyst consensus is cautious about the ADGI stock, with a Hold rating, based on 1 Buy and 3 Holds. The average Adagio price target of $26.67 indicates an upside potential of 267.36%.
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