Australian pharmaceuticals provider Recce's shares have surged by as much as 18 per cent after reporting progress in developing treatments for the coronavirus.
Researchers for Recce in the US have reported two drugs tested on human lung tissue infected with COVID-19 reduced the infection.
The tests used very small volumes of the drugs, called Recce 327 and Recce 529.
The researchers, from the University of Tennessee and Path BioAnalytics, have recommended testing progress to ferrets. Greater volumes of the drugs will be used.
The study using ferrets is expected to be done by the end of the year.
Recce is investigating whether patients could receive the drugs via an inhaler, or intravenously.
A separate study also found the low volumes of the drugs caused very little toxicity in healthy monkey cells.
However the company said further testing was needed before the compounds could be deemed safe or effective.
More than 892,000 people have died from COVID-19 during the pandemic, according to a tracking tool of John Hopkins University in the US.
Shares in Recce gained by as much as 18 per cent earlier and reached a record $1.87.
They finished up by 10.17 per cent to $1.62 at the close of trade.