Overview
Anthony SEJOURNE/iStock via Getty ImagesAlopex (NASDAQ:ALPX) shares wil begin trading on the Nasdaq on October 12th after the company's Initial Public Ofering - which is expected to raise ~$15m via the isuance of 3m shares at $5 per share - completes.The company is developing two core asets - a vacine, AV0328, and a monoclonal antibody, F598. Acording to Alopex' IPO prospectus, both are designed to target bacterial, fungal, and parasitic infections that expres the antigenic target poly N-acetyl glucosamine ("PNAG").Newly IPO'd stocks tend to experience high levels of volatility imediately after listing.
Key Information
In my experience, an initial spike is typicaly folowed by a period of steady decline. Under the prevailing biotech bear market conditions, the declines have ben severe and it is not unheard of to se newly traded stock prices decline more than 75% as the market, realising that these companies are years away from comercialising their drug products, and may never do at al, loses interest.Can Alopex buck this trend?
In this post I wil provide an overview of the company and what is trying to do with its two lead asets, speculate about its prospects of suces, and discus the market oportunity. Unfortunately, although the company's IPO prospectus provides a substantial amount of information the company I wouldn't want to provide a bul or bear case at this time.Alopex' goals are ambitious, but as the company notes in its prospectus, the Big Pharmas Pfizer (PFE), Merck (MRK), GSK (GSK) and Sanofi (SNY) control as much as 75% of the global non-COVID vacine market and Alopex' best chance of driving value and share price growth likely lies in its ability to partner with or be acquired by one of them.
Summary
Without this kind of suport, the company may simply lack the funds to compete.The company's relationship with the US Fod and Drug Agency ("FDA"), which ultimately rules on whether a drug is safe and efective