Virax Biolabs (NASDAQ:VRAX) is an innovative biotechnology company focused on the detection and diagnosis of viral diseases. Virax Biolabs believes it is developing a game-changing immunology platform called Virax Immune that is based around proprietary T-Cell testing technology which is anticipated to be effective in the diagnosis of COVID-19, Monkeypox, Hepatitis B, Epstein-Barr virus, Human Papilloma Virus, and other viral threats. This platform intends to assess each individual’s immune risk profile against major global viral diseases. Currently, the company has developed a functioning prototype of T-Cell IVD Test under the Virax Immune brand but is still in the process of conducting further tests. This platform is expected to be particularly useful in the assessment of personal protection from, and threat analysis of the major viruses people are facing globally.
The company also operates one other distribution platform called ViraxClear. ViraxClear distributes diagnostic testing kits developed by other manufacturers on a global scale. These include tests for Covid-19, HPV, RSV and Monkeypox. The company does not manufacture or produce products sold through ViraxClear. However, it is the company’s goal to maximize consumers’ access to these products and services through competitive pricing and efficient distribution. Revenue streams from this distribution platform should help fund the research & development and commercialization of the company’s key Virax Immune platform.
The company’s mission is to focus on the immunology markets. Immunology is the study of the human immune system and is an important branch of the medical and biological sciences. The immune system protects people from infection through various lines of defense. If the immune system is not functioning as it should, it can result in diseases such as autoimmunity, allergies, and cancer. Research has also shown that immune responses contribute to the development of many common disorders not traditionally viewed as immunologic, including metabolic, cardiovascular, and neurodegenerative conditions such as Alzheimer’s.
Virax went public in July 2022 selling 1,350,000 shares of common stock at a price of $5.00 per share. Gross proceeds raised was approximately $7.8 million. In November 2022, the company completed a PIPE offering selling 2,330,000 shares at a price of $1.65 per share raising approximately $3.8 million in gross proceeds.
Cash balances as of January 26, 2023 were $6.7 million and the company has no long-term debt on the balance sheet. Assuming no meaningful revenue generation over the next 12 months, we believe the company is funded to support planned operations through the 1st calendar quarter of 2024. This time frame will likely allow for the development and commercial launch of the Virax Immune platform.
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