Today, the American Depositary Receipts (ADRs) of biotech company Vaccitech (NASDAQ:VACC) began trading. Much to the dismay of investors in VACC stock, shares are down more than 13% at the time of writing.
Indeed, this IPO was expected to be one of the hottest of April. Early stage biotech startups are all the rage these days. Companies with exposure to Covid-19 vaccines, even more so.
Vaccitech’s real allure is with the company’s partnership with AstraZeneca (NASDAQ:AZN) to bring its Covid-19 vaccine to fruition. Indeed, Vaccitech was one of the key partners in developing this vaccine. The company is a spin-out from the University of Oxford’s Jenner Institute. This is one of the most highly respected research institutes globally for vaccine production.
As vaccine rollouts accelerate globally, investors have looked at Vaccitech as a unique play on the AstraZeneca vaccine. Today, it appears this catalyst is working against investors.
Here’s some more information on what investors might want to know about this IPO.
Here’s What Went Down With the VACC Stock IPO
- Yesterday, Vaccitech announced the pricing for its IPO. Share were priced at $17 per ADR, and 6.5 million ordinary shares were listed.
- Accordingly, the company reported gross proceeds of more than $110 million as a result of the transaction.
- Today, the stock opened at $13.62, representing a 20% discount to its IPO price.
- However, since then, shares have recovered to the $14.60 level at the time of writing.
- Investors appear to be less-enthused about this biotech stock than initially expected.
- Indeed, shares are currently trading well below the bottom end of the $16-$18 range initially discussed by Vaccitech.
- Recent reports about the struggle AstraZeneca has had in gathering data needed for FDA approval appears to be at play with VACC stock today.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article.