Contributor, Benzinga
January 4, 2022
Open-Close-Vol / Avg.- / -Mkt Cap-Day Range- - -52 Wk Range- - -

Labeled with the ominous term the “silent killer,” high blood pressure (HBP) or hypertension “has no obvious symptoms to indicate that something is wrong,” according to the American Heart Association. Therefore, health agencies recommend that people regularly monitor their blood pressure and take preventative measures. Left alone, HBP can snowball into other conditions such as heart attacks or strokes.

But what makes hypertension particularly maddening are myriad convoluted factors that obfuscate root causes. While hypertension may fly under the radar in terms of noticeable symptoms, that doesn’t necessarily mean that every person experiences HBP in an identical manner. According to WebMD.com, when blood pressure is extremely high, people can experience severe headaches or fatigue.

In the same breath, the health resource notes that nearly one-third of people who have HBP don’t know it. Therefore, it’s not out of the realm of possibility that sufferers could mistake symptoms for other causes, leading to self-medication and further complications.

But even beyond that point, hypertension imposes another dilemma for medical practitioners: what to do about patients who don’t respond to traditional HBP therapies? Since hypertension cannot be cured, an addressable variant could be fatal.

Fortunately, CinCor Pharma Inc. may provide a critical lifeline, drawing significant attention for its upcoming initial public offering (IPO).

When Is the CinCor Pharma IPO Date?

Following a record-breaking tally for fresh public listings in 2021, many investors are looking forward to an equally bright period for the new year. Undoubtedly, that presents both opportunities and risks for CinCor Pharma, which is scheduled to ink its debut on the IPO calendar on Jan. 7.

As republished through Benzinga, CinCor — a clinical-stage biopharmaceutical firm specializing in the treatment of hypertension and other cardio-renal diseases — announced on Jan. 3 that it will distribute 11 million shares in its IPO. Management expects the deal to price between $15 and $17, with the initial offering rate to be confirmed on Jan. 6.

At the midpoint of the estimated pricing spectrum, CinCor will raise $176 million before deducting expenses associated with the IPO. Assuming this framework, the biotech firm will command a fully diluted market value of $594 million. Shares will trade on the Nasdaq exchange under the ticker symbol CINC. Morgan Stanley (NYSE: MS), Jefferies Financial Group Inc. (NYSE: JEF) and Evercore Inc. (NYSE: EVR) represent the joint bookrunners for the offering.

In addition, CinCor announced that it launched a roadshow — or a meeting with institutional and other high-value investors — to gin up interest for the public market debut. Not only do roadshows generate excitement for the offering, it gives the issuing management team a chance to gauge real demand and apply changes if necessary.

As of the press release on Jan. 3, CinCor warned that the “proposed offering is subject to market and other conditions, and there can be no assurance as to whether or when the proposed offering may be completed or the actual size or terms of the proposed offering.” Still, should the deal progress, it will enter the public arena at an interesting juncture.

For one thing, both the domestic and international IPO market has been massive. In 2021, U.S.-based listings soared above $301 billion in value. Globally, the total tally comes out to over $594 billion, implying strong appetite for speculative fare like CINC stock. On the other hand, ravenous demand for growth-oriented investments historically has never been sustainable, an underlying lesson that Yale professor Robert J. Shiller brought up in an op-ed for The New York Times last year.

Combined with the Federal Reserve targeting three rate hikes this year — an action that would raise borrowing costs — sentiment for risk-on assets could wane. If so, prospective investors will want to conduct intense due diligence on CINC stock before proceeding.

CinCor Pharma Financial History

Virtually all rational-minded individuals want advanced biotech firms like CinCor Pharma to succeed. In theory, their ability to punch through rigorous clinical trials and reach commercial distribution translates to millions, perhaps billions of lives saved when all other options have been exhausted.

However, investors within the biotech industry must set aside the temptation that trickles into their amygdala and focus on the hard data. Ignoring this protocol is akin to setting up an appointment with your tax attorney prior to guessing those winning numbers. And for CinCor, the key number you need to focus on is $0.

According to the company’s condensed financial statements, it generated no sales, which many euphemistically term as a “pre-revenue” organization. Call it what you want, CinCor doesn’t make money. Instead, it loses greenbacks to the tune of $21 million in the nine months ending Sept. 30, 2021. Further, this figure represents an unfavorable expansion from a net loss of $16.5 million posted in the year-ago period.

To be 100% fair, a pre-revenue clinical-stage biopharma launching an IPO is par for the course. Also, no sales doesn’t equate to insolvent. Based on its cash-flow statement, CinCor generated $141.7 million in cash flow for the first three quarters of 2021, mainly based on net cash provided by financing activities.

Still, investors must be aware that if they step foot into CINC stock, their funds will essentially finance the underlying company up until it reaches a clinical breakthrough. However, such breakthroughs are incredibly rare. According to the Biotechnology Innovation Organization, “Phase II clinical programs continue to experience the lowest success rate of the four development phases, with only 30.7% of developmental candidates advancing to Phase III.”

Because CinCor’s main (and only) therapy CIN-107 — a highly selective aldosterone synthase inhibitor designed to improve health outcomes for HBP sufferers that have not responded to traditional hypertension regimens — is in Phase 2 trials for most indications, it faces a tough road ahead. True, every therapy must be adjudicated individually. However, the clinical roadways are littered with potholes and distracted drivers just waiting to ambush pharmaceutical hopefuls with a heaping dose of reality.

Another note regarding the financial dynamics of CINC stock is that the pathway toward commercialization (or outright acquisition by a larger firm) is usually non-linear. In other words, those who hold clinical-stage pharma IPOs for the long term can expect multiple bruising rounds of volatility. Ironically, CinCor is not for the weak of heart.

CinCor Pharma Potential

Although CinCor — like any other high-risk, high-reward biotech firm — faces myriad difficulties in its soon-to-be public journey, it’s not without serious potential. According to the Mayo Clinic, HBP is a common condition that is addressable but requires constant management. Cynically, this dynamic possibly translates to future robust revenue streams.

On paper, the global hypertension drug market reached an estimated value of $24.7 billion in 2018. Other research papers suggest that the sector hit nearly $22.6 billion in the same year but with projections for the segment to reach almost $29 billion by 2026.

Interestingly, the increase in the geriatric population and sedentary lifestyles could boost growth for hypertension therapies. Given that the COVID-19 pandemic forced a dramatic, almost reclusive ethos on global populations, it’s not unfathomable that the total market for CinCor could unexpectedly rise.

Nevertheless, CINC stock is a venture not to be taken lightly. On balance, biotech firms tend to be binary. When clinical trials present encouraging results, shares soar. But the opposite is true for less-than-optimistic results, requiring careful money management.

How to Buy CinCor Pharma IPO (CINC) Stock

Should you choose to acquire CINC at the open, you’ll need to know how to buy stocks. Below is a quick refresher.

Step 1: Pick a brokerage.

With the best brokers offering similar incentives, take the time to consider which platform ideally suits your needs.

Step 2: Decide how many shares you want.

Biotech IPOs can be terribly volatile. Therefore, always choose a balanced share count.

Step 3: Choose your order type.

Before trading, learn these market concepts.

  • Bid: The buyer’s best offer for a stock.
  • Ask: The seller’s lowest acceptable price.
  • Spread: The difference between the bid-ask price, the spread indicates market risk as this is also the profit margin for market makers.
  • Limit order: Buy or sell requests at a predetermined price, limit orders provide transparency but no execution guarantees.
  • Market order: Market orders guarantee fulfillment but only at the current rate.
  • Stop-loss order: Stop-loss orders automatically exit your position at either a predetermined price or anything lower.
  • Stop-limit order: Stop-limit orders only leave positions at a specified price, but they also carry non-fulfillment risks.

Step 4: Execute your trade.

Follow these steps to execute a market order:

  1. Select your action type (buy or sell).
  2. Enter the shares you want to acquire (or sell).
  3. Hit the Buy (or Sell) button.

Follow the same sequence for limit orders (but include your execution price).

CINC Restrictions for Retail Investors

Review the Financial Industry Regulatory Authority (FINRA) rules on restricted persons before participating in an IPO. Don’t engage if you have privileged information.

CINC Pre-IPO

For those who want to participate in the pre-IPO opportunity (acquisition at the initial offering price) of CinCor Pharma, check out Freedom Finance for more information.

High-Pressured Irony

As a common and silent killer, hypertension is not often a road to inevitability unless traditional medicines fail to work. That’s where CinCor Pharma enters the picture with a hopeful therapeutic candidate. Still, you must be aware that the potential volatility of CINC stock itself could give you HBP, so caution is warranted.

Join our IPO Newsletter for FREE

About Joshua Enomoto

His distinct writing style of distilling convoluted data into relatable and compelling narratives has earned him recognition among several investment-related publications.