Vaccinex IPO: Tempting Market Opportunity, But Overvalued

With a market opportunity of more than $1.5 billion, Vaccinex, Inc. (VCNX) seems like a stock to be followed very closely once the IPO goes live. With that, the data from Phase 2 clinical trial will be released in the third quarter of 2020, which is not ideal. Shareholders will need to wait for a long time to obtain stock returns. In addition, taking into account the cash in hand, the company seems a bit overvalued as compared to other pharmaceutical IPOs. Keeping an eye on the stock and waiting for more competitive share prices seem to be an optimal trading strategy here.

Source: S-1/A

Business

Incorporated in Delaware in April 2001 and headquartered in Rochester, New York, Vaccinex, Inc. is a biotechnology company focused on the development of biotherapeutics to treat cancer, neurodegenerative diseases, and autoimmune disorders.

Casting itself as the leader in the field of semaphorin 4D, or SEMA4D, biology, the company seems to be the only biotech company targeting SEMA4D as a potential treatment for cancer, neurodegenerative diseases, or autoimmune disorders. The company also makes use of the ActivMAb antibody discovery platform, which is based on a novel method for expressing large and diverse libraries of high affinity, full-length human monoclonal antibodies on the surface of vaccinia, a mammalian virus. Finally, the company is using a cell-based vaccine platform called Natural Killer, which kills certain types of parasites and cells, including tumor cells and virus-infected cells.

With four candidates in Phase 1 and at pre-clinical stage and one candidate in Phase 2 of development, Vaccinex, Inc. still seems at an early stage. Bear in mind that the data from the Phase 2 trials of VX15 for Huntington’s disease is expected by the third quarter of 2020:

Source: S-1/A

In October 2017, Vaccinex commenced a collaboration agreement

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