Virax Biolabs is at the Forefront of the Global Response Against Monkeypox

Virax Biolabs has three platforms that enables it to respond promptly to viral diseases: Virax Immune, ViraxCare, and ViraxClear. It has previously developed Rapid Antibody IgC/IgM Test (which detects antibodies), Antigen Test Kit (which relies on highly sensitive monoclonal antibodies), Fluorescence PCR Detection Kit, and Neutralising Antibody Test (to assess the effectiveness of vaccines) for the COVID-19 virus. In addition, Virax Biolabs has developed an immunity testing kit to detect immunity against COVID-19 by relaying on T-cell response rather than antibodies. The difference between antibodies and T-cell response is that T-cells coordinate the immune system against viral attack, and their response lasts longer. Therefore they can still be detected at a later date after the antibodies have faded.

Virax Biolabs provides diagnostics and medical devices that are accurate and produce results quickly (often in realtime). Research has shown that early detection of viral infections, including COVID-19, improves prognosis. Moreover, assessing immune response enables healthcare professionals to assess the efficacy of various vaccines, and thus enables the manufacturing of better vaccines now and in the future and shortens the development lifecycle.

Virax BioLabs is listed on the NasdaqCM under the ticker “VRAX” and has a market capitalisation of over $50 million as of August 22nd. It is a fairly new share on the exchange, as the company has launched its IPO earlier in July this year. The IPO consisted of 1,350,000 ordinary shares at a public offering price of $5.00 per share, which enabled the company to raise $6.75 million, before deducting expenses.

The introduction of Monkeypox PCR Detection Kit has given the stock price a boost. However, the stock is trading now at around $4.5 per share. There is still limited trading data around the stock as it has been listed only last month, and thus the trend in price movement is not yet clear. Despite this, judging from the company’s fundamentals, there is still considerable growth potential. The company is already generating revenue and has total assets in the value of $48.7K as of the end of the first quarter of 2022.

Virax is currently working hard to reach the breakeven point and profitability stage faster. Its various platforms will enable it to develop more products in the future in addition to its current offerings, to improve health outcomes for patients and support healthcare professionals with what they do. The company operates in two growing markets: testing and in vitro. Both have strong demand drivers as people and governments are more concerned about viral infections, and male infertility problems are a major cause of infertility among couples. The global in vitro diagnostics market was an estimated $83.4 billion in 2020 and is forecast to reach $113 billion by 2027. The global precision diagnostics market size was $54.05 billion in 2020 and is projected to grow from $60.35 billion in 2021 to USD 138.85 billion in 2028 at a CAGR of 12.6% over 2021-2028. Those factors can be catalysts for the company’s growth.

The global response to COVID-19 has been remarkably faster than in earlier outbreaks, thanks to advances in bioscience and technology and the intersection between the two. Companies offering diagnostics, profiling, and prevention technologies, like Virax Biolabs, can leverage their current capabilities quickly even if new viruses emerge or current ones mutate. When that happens, the global response to viral outbreaks becomes more efficient, and the impact of viral diseases is mitigated. In addition to health outcomes, Virax Biolabs can deliver economic profit to investors as it can leverage the economies of scope arising from its existing technologies. It can expand its product line vertically as well as horizontally for the highest degrees of efficiency. Given all that, the company’s growth potential over the long term remains to be witnessed.