Norwegian biotech firm Hofseth BioCare shares surged after announcing its plans for phase two of clinically assessing its salmon oil brand OmeGo as a potential treatment for patients with COVID-19 related acute respiratory distress syndrome.

Hofseth's share price increased 10 percent when markets opened May 26 to NOK 9.72 (€0.90/$1.00) per share in response to the announcement.

The treatment focuses on former smokers and steroid-resistant asthma patients showing non-acute lung injuries caused by COVID-19. The company will perform the trial on 100 patients who tested positive for coronavirus during this phase.

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The clinical trial is funded by the company's existing research and development budget for 2020.

Hofseth reported continued red numbers in the first quarter of the year, but showed improvements, with a hike in revenues reducing losses.