With the flu pandemic continuing to spread, BioCryst will likely lock in additional international partnerships during the near term. "We are currently exploring other opportunities to expand the geographic reach of peramivir," stated President and CEO Jon Stonehouse, referencing BioCryst's anti-viral agent.

Peramivir works by inhibiting the interactions of influenza neuraminidase, an enzyme that's critical in spreading the influenza virus. The drug was created in partnership with Shionogi & Co., Ltd. of Japan, and regulatory approval will be sought in that country later this year.

Additionally, BioCryst said its has finalized plans for Phase 3 studies of peramivir. Enrollment will begin once all approvals have been secured and the project has sufficient funding to complete the trials.

Shares of BioCryst raced higher in light of the news, extending their year-to-date rally of more than 683%. The stock quickly surged above short-term resistance at its 10-day and 20-day moving averages, and it was up nearly 16% at its intraday peak of $12.40.

Tuesday's gains have probably been exacerbated by a short-squeeze rally. With nearly 20% of BCRX's float sold short, there's plenty of sideline cash that could fuel continued gains for the equity.

Elizabeth Harrow is an analyst and financial writer in the research department at Schaeffer's Investment Research. She is featured in the video series Schaeffer's Daily Q&A on SchaeffersResearch.com.