Why Cocrystal Pharma Will Fade Today’s Rally

Friday’s PR has nothing new in it, it was already known that they are working on a coronavirus vaccine.
COCP was trading lower than their $1.30 offering price last Friday, and at $0.50 the day before they announced working on a coronavirus vaccine.
They are only in the preclinical stage, aren’t even close to human studies and are way behind other biotechs.
The drug patent is from a University which is low quality, COCP only paid $80K for.
The company has no collaborations with other companies or government entities.
The borrow rate was already at 88% before the Friday news was announced. That shows short sellers thought it’s a good fundamental short at only $1.

Cocrystal Pharma (COCP) issued a PR after the market close on Friday, stating that it simply “plans to advance coronavirus program”. Friday’s PR has nothing new in it, it only says that Cocrystal Pharma (COCP) is moving forward with its coronavirus program. There’s no new data, no collaborations, nothing. But it was already expected that (COCP) is working on a coronavirus vaccine. That’s how they were able to do the offering at $1.30 on 2/27. The stock was trading at $0.50 per share on 2/21, as shown in the following COCP 3 month chart:

COCP hasn’t started any studies yet. It states in the PR:

“Given the global threat of COVID1-9, our primary goal is to advance our Coronavirus program into preclinical development. ”

So COCP’s “goal” is to start preclinical studies. The company is way behind other biotechs who have already started coronavirus phase I trials like Inovio (INO) and Moderna (MRNA).

The company has no government collaborations or partnerships with other pharmaceutical companies. It only acquired a license

from the Kansas State University Research Foundation that it only paid $80K up front and $20K per year for.