How to Buy Surrozen (NASDAQ: SRZN) Stock

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Contributor, Benzinga
March 28, 2022

Unhindered by subtle social cues and barriers learned later in life, young children’s inquiries often catch adults off guard due to their bluntness. And in many cases, the grownups in the room don’t always have the answer. For instance, scientists have long known that lower organisms readily “grow new heads, tails and other body parts when injured.”

Less understood is why advanced organisms cannot do the same. However, Surrozen, a groundbreaking life sciences firm, seeks to challenge old presumptions about human biology with its paradigm-shattering regenerative therapies. Naturally, the company’s stock offering promises to be a compelling one.

When Did Surrozen IPO?

Surrozen IPO’d on August 12, 2021.

Surrozen Financial History

For outside observers looking into the broader healthcare system, it’s difficult not to come away with a cynical perspective, much like comedian Chris Rock did in his standup routine, “Bigger & Blacker.” In 1 segment, Rock boldly called out the pharmaceutical industry, noting wryly that the money isn’t in the cure but in the management of a disease or condition.

However, Surrozen, much like a SPAC merger is to a traditional IPO, embodies a different animal compared to so many other life science investments. Too often, pharmaceutical firms have answers for patients, but only if they catch a disease in its early manifestations.

For instance, the World Health Organization (WHO) notes that “early cancer diagnosis saves lives” and cuts down on treatment costs. Still, WHO points out that even in “countries with optimal health systems and services, many cancer cases are diagnosed at an advanced stage, when they are harder to treat successfully.”

Unfortunately, though, not everyone has access to regular routine health checkups. And in some developing nations, the infrastructure and training of medical professionals may not be up to modern standards, which then raises the likelihood of diagnosing diseases at late stages. It also introduces the obvious question: what about these patients who are increasingly falling through the cracks?

Surrozen may bring a much-needed solution with its groundbreaking regenerative therapies, which can not only mitigate medical problems but restore already damaged tissues and organs through modulating and expanding the scope of the body’s natural repair mechanisms.

Granted, the process sounds like something out of a science-fiction movie. Nevertheless, Surrozen has attracted funding from life science specialists, raising a total of $133 million across 3 private funding rounds between February 2017 and June 2020. While it’s always risky to wager on pre-revenue companies, Surrozen could forever change the healthcare industry if successful.

Surrozen Potential

To understand Surrozen’s ultimate upside potential, you must appreciate the Wnt signaling pathway, a transduction-based process that “regulates crucial aspects of cell fate determination, cell migration, cell polarity, neural patterning and organogenesis during embryonic development.” According to scientific researchers Yuko Komiya and Raymond Habas, Wnt signaling has recently “been implicated in stem cell renewal,” which undergirds Surrozen’s fundamental initiative to radically change healthcare.

By modulating this pathway, Surrozen can essentially teach the body’s cells to expand self-healing capabilities. For instance, Popsci.com notes that “mammals do regenerate skin, muscle and blood.” But what if there was a mechanism to restore more than just the usual elements? To answer this pressing inquiry, the biotech firm is targeting the Wnt pathway “to create regenerative medicines for diseases of the eye, lung, kidney, cochlea, skin, pancreas and central nervous system.”

For now, Surrozen will leverage the proceeds from its IPO to support its lead programs in addressing inflammatory bowel disease (IBD) and severe alcoholic hepatitis. In the former instance, approximately 1.6 million Americans suffer from IBD, with 70,000 new cases diagnosed each year, per the UCLA Center for Inflammatory Bowel Diseases. Fortunately, Surrozen can be a gamechanger, with the company’s therapeutics potentially able to “stimulate regeneration of intestinal epithelial cells.”

Regarding the latter situation, heavy alcohol drinkers risk worsening their hepatitis, resulting in cirrhosis. However, through Surrozen’s therapeutics, patients may benefit from stimulated liver cell proliferation and the reduction of fibrosis.

Again, SRZN stock is an ultra-high-risk investment with a strong probability of failure. That said, the potential upside rewards could rank among the greatest IPOs in history.

How to Buy Surrozen (NASDAQ: SRZN) Stock

If you know how to buy stocks, you can start trading right away. If not, just follow the steps below.

Step 1: Pick a brokerage.

Today, online brokerages feature virtually identical financial incentives like commission-free trading. Therefore, you should pick a platform that suits your lifestyle and gives you the access you’re seeking, such as derivative markets or pre-IPO shares of select enterprises.

Below is a list of best brokers to consider.

Step 2: Decide how many shares you want.

Risk management is vital to success on Wall Street and even more so with new stocks. Therefore, choose a balanced share count that affords you solid rewards in case your thesis proves correct and limits downside in case it doesn’t.

Step 3: Choose your order type.

Before proceeding with your 1st trade, review these market concepts.

  • Bid: The maximum price a buyer will extend, the bid is always lower than the ask.
  • Ask: The minimum price a seller will agree to, the ask is always higher than the bid.
  • Spread: Principally the difference between the bid and ask price, the spread also signals market liquidity and risk. Tighter spreads imply higher liquidity and lower risk, while the opposite is true for broader spreads.
  • Limit order: Use limit orders to request trades at specific prices, which offer price transparency but no execution guarantees.
  • Market order: On the other hand, market orders guarantee fulfillment but at the current rate, which constantly changes.
  • Stop-loss order: A protective method for your portfolio, a stop-loss order automatically exits your position at either a predetermined price or lower.
  • Stop-limit order: In contrast, stop-limit orders only execute at a predetermined rate, eliminating price ambiguities. However, such orders carry the same non-fulfillment risk as limit orders.

Step 4: Execute your trade. 

To execute a market order, follow these steps:

  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).

An Offering Only for the Daring

Among aspirational stocks, Surrozen may take the cake. While the regenerative therapeutic angle has significant scientific validity, much of the underlying pathway’s inner workings remain mysterious. Naturally, then, the chances for failure are substantial. But in fairness, clinical success would revolutionize our understanding of the human body, sparking a revolution in healthcare.

Joshua Enomoto

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.