Pluristem Therapeutics Inc. (NASDAQ: PSTI) has made groundbreaking progress in the treatment for COVID-19 in treating severely ill patients. Pluristem uses PLX stem therapy on patients that have critical complications due to COVID-19. The Israeli based biotech released a statement on Monday : confirming they had been cleared by the FDA to proceed with the treatment in U.S., under Coronavirus Treatment Acceleration Program (CTAP). After these promising results, investors have already backed (NASDAQ: PSTI), triggering a 200% stock increase in the past 2 weeks.

“We are receiving many inquiries and requests for treatment from healthcare providers and families worldwide. In parallel with our planned clinical trial, we expect to continue treating patients under compassionate use through the appropriate regulatory clearances in the United States and Israel, as well as expanding treatment under compassionate use in other countries.”
CEO and President Yaky Yanay.

After treating 7 patients in ICU, suffering from the severe complication of Acute Respiratory Distress Syndrome (ARDS), the recovery rate recorded was an astonishing 100%. From these recovered, 66% of patients in the first trial experienced an improvement in respiratory parameters. These developments allowed PSTI to treat their first US patient under the FDA’s Single Patient Expanded Access Program. If proven successful in the US, we could be looking at a potent treatment for severely ill/complicated patients with COVID-19 globally.

Although skeptics believe that seven patients proves nothing in the grand scheme of things, the treatment itself is extremely complex. The cells have immunomodulatory properties that simply put can stabilise the immune response that causes serious complications. According to Pluristem, “PLX cells may potentially reduce the incidence and\or severity of COVID-19 pneumonia and pneumonitis leading hopefully to a better prognosis for the patients.” If you want to look into PSTI’s results and research, you can do that here.

Is PSTI worth the investment?

Before I start, I am obliged to remind our viewers that this is not advice only general commentary from my extensive research in this area.

PSTI’s story screams success, hope, and opportunity. However, the same narrative applies to any COVID-19 treatment company out there. Thus, you would want to justify why PSTI is different before you invest.

Pluristem surged by 200% in 9 days. However, explosive momentum is typical for positive COVID-test results. If PSTI could stay above the $9.20 mark for the coming days/weeks, then an argument about future bullish movement is plausible. Also, the current resistance ceiling, where the party stopped, is around the $10.50 mark. Making us question whether the stock is at the top of the cliff? In saying that, PSTI’s moving average over the past 9 days is excellent. Because each new low is creating an upwards staircase. Which is what you expect to see in a bullish stock.

Furthermore, Pluristem therapeutics is laying the groundwork to initiate an imminent multinational clinical trial for PLX cells. With PLX cells being available off the shelf and scalable at large, PSTI is well-positioned to address the global pandemic. Thus, providing a bullish outlook.

However, never jump on a hot stock without doing your own research. Because you will get burned. I am not for or against investing in COVID-19 treatment companies. Because there is a lot of money to gain. However, there is also a lot of money to lose if your timing is off. Therefore, if you know the risks of pumping and dumping, the company, and the future expectation of investors, then you could ride the wave.

Also, I would be looking at testing kit companies, such as Scworx (NASDAQ: WORX), who has tremendous upside potential (opinion not advice).

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The information above should not be taken as financial advice. Youth Investment Group has no liability for personal financial interests or investment decisions. You should make your own investment decisions based upon your own research and what you believe is best for you.


Written by Tyger Fitzpatrick and Patrick McLoughlin, Founder, and Senior Manager of YIG.