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Vaxxinity stock appeared on Robinhood IPO Access last week. This biotechnology company expects an IPO on Nov. 11 and will trade on the Nasdaq under the VAXX ticker symbol.
The Vaxxinity IPO will sell 6.7 million shares to the public at a range of $14 to $16. The company aims to hit $101 million. At the midpoint of its share price, Vaxxinity could have a valuation of $2.1 billion.
Vaxxinity's overall goal is to democratize healthcare. But what's most interesting is the company's area of focus: developing vaccines for chronic illnesses.
According to Vaxxinity's website, there are 29 vaccine-preventable diseases, and over 80% of the world is vaccinated. But that's limited to only infectious diseases.
And thanks to the innovations in medicine and technology, Vaxxinity aims to change that by bringing cheaper, more accessible prevention and treatment of chronic diseases.
The company claims that rather than taking away from the current vaccine-manufacturer market share, it's expanding the overall addressable market. It's taken to calling this whole process "expansive disruption."
But does this "expansive disruption" make the biotech company a buy after the IPO?
Let's find out...
What Is Vaxxinity?
Founded in 2014, Vaxxinity's wants to disrupt how patients diagnosed with chronic diseases are currently being treated. Using its synthetic peptide vaccine platform - or the Vaxxine Platform, for short - the company believes that it can create a new area of therapeutics.
The Vaxxine Platform is designed turn the body into its own "drug factory" by harnessing the immune system to stimulate the production of antibodies. And the idea is that this stimulation of antibodies will result in protective effects for the patient.
Basically, it's like a "sheep in wolf's clothing." The synthetic portion of the harmful protein that the body sees as a sheep is combined with a synthetic peptide that acts as the "wolf's clothing" aspect. This peptide then signals to the immune system that the sheep is harmful, which works to balance it out antibodies.
Right now, Vaxxinity is working on therapeutics for five chronic disease, including Alzheimer's Disease, Parkinson's Disease, migraines, and hypercholesterolemia. The company expects to begin the next phase of development for early Alzheimer's Disease efficacy in 2022.
Vaxxinity is also working on a vaccine for COVID-19 prevention.
The biotech company might have niche market to expand into. But does it have the financials to grow?
Is Vaxxinity Profitable?
It turns out that Vaxxinity isn't currently profitable.
While the company had roughly $110 million, it also carries a debt of a little more than $150 million. And how much of that gap is closed depends on how successful the IPO is.
Whatever is left of the IPO money, Vaxxinity plans on rolling it into product development. This is a great sign for future development and growth. But it doesn't give us a great idea of where that leaves Vaxxinity beyond its IPO.
If we look at the addressable markets that the biotech company could capitalize on, we get a better idea of the Vaxxinity's potential. It's developing treatments for Alzheimer's Disease, a $6 billion market, and Parkinson's Disease, a $5 billion market. Both of these have untapped potential, which bodes well for the emerging biotech company.
Vaxxinity is developing treatments for other major markets like chronic migraine ($2 billion), hypercholesterolemia ($22 billion), and COVID-19, which is potentially a market worth $100 billion or more.
So, does Vaxxinity's potential market make the IPO a buy?
Vaxxinity IPO Forecast
Unfortunately, it doesn't.
Vaxxinity is an interesting prospect with great potential, all based around mostly untapped market. It could bring "expansive disruptions" to the healthcare industry, but the company needs to prove itself a bit more before it's worth investing in.
Especially since Vaxxinity's business relies on the development, approval, and successful launch of its products. The company can present innovative technology all day. If it isn't bringing in cash, then it won't be around long.
So, as promising as the potential is, it's best to wait on this one and see where Vaxxinity moves in 2022. Once its Alzheimer's treatment hits the market, that will be a good time to check back in on this stock and see how it's doing.
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