One of the lessons that we learned from the pandemic is that no matter how advanced we are as a nation, a microscopic threat can change everything from business and industry to hospitality, the real estate market and more.
That’s why Valneva is relevant. As a vaccine specialist, it can help prevent another pandemic from capsizing an already vulnerable global economy. Read more to learn how to buy Valneva (NASDAQ: VALN) stock, the company’s financial history and much more.
When Did Valneva IPO?
It’s important to note that Valneva was a publicly-traded company prior to its U.S. IPO, with its shares listed on the Euronext exchange in Paris as VLA. However, a listing on a major U.S. exchange is much more lucrative; hence the IPO.
Valneva debuted on the NASDAQ on May 6, 2021 at $27 per share.
Valneva Financial History
Though vaccine research and development are all the rage, initially, Valneva took a hit to its financials as the world economy shut down. Nevertheless, the company began fighting back, generating very respectable numbers given the broader context.
According to Valneva’s amended Form F-1 with the Securities and Exchange Commission, the vaccine developer generated revenue of 110.3 million EUR in 2020 or approximately $132.3 million using the time of writing exchange rate. This was down 12.6% from the prior year’s sales tally of 126.2 million EUR or roughly $151.4 million.
Still, it’s fair to point out that at the end of the first half of 2020, Valneva’s revenue was at 47.9 EUR or about $57.4 million. Therefore, the company made up significant ground to end the year on a relative high note.
Further, you should note that research and development expenses last year jumped 122% from 2019, while marketing and distribution expenses declined more than 24%. This suggests growing demand for vaccines and less convincing (marketing) required to generate sales.
Finally on the financial front, Valneva raised nearly $333 million since June 2013 from various post-IPO debt and equity funding rounds.
Valneva Potential
Valneva specializes in a specific vaccine category called prophylactic vaccines for infectious diseases with significant unmet medical needs. Prophylactics introduce antigens to a person’s body, with the end goal that the individual’s immune system will create specific antibodies for said antigens, thus achieving protection from the underlying illness. This contrasts with therapeutic vaccines, which bolster a patient’s immune system to fight an illness they already have.
Logically, prophylactic vaccines offer tremendous pertinence to the current COVID-19 crisis. As you know, variants of the SARS-CoV-2 virus wreaked havoc in many countries. At the moment, India suffers from a devastating second wave, with thousands dying from the virus every day. Given the possibility that COVID-19 could become endemic, Valneva’s coronavirus vaccine may still play a vital role despite it coming late into the game.
Interestingly, Valneva’s solution utilizes an inactivated whole virus vaccine approach, which is a traditional vaccine methodology. In contrast, Pfizer (NYSE: PFE) and Moderna (NASDAQ: MRNA) developed messenger-RNA (mRNA) vaccines, which are much more advanced and enjoy the advantage of quicker manufacturing speed.
However, the vaccine hesitant often cite the rapidity and “untested” nature of mRNA vaccines as a negative. By deploying a proven approach, Valneva may be able to win over the reluctant.
Lastly, the devastation of COVID-19 taught world leaders a harsh lesson: prepare for biological threats or suffer severe social and economic consequences. Almost inevitably, preventative vaccine research will be huge, possibly bolstering the Valneva IPO.
How to Buy Valneva (VALN) Stock
If you know how to buy stocks, you can quickly jump aboard. When you purchase stock in any company, remember that you can invest as much as you like. However, you mut be prepared to lose that money because all investments are volatile on some level and unpredictable. If you need a little guidance, just follow these simple steps.
- Pick a brokerage.
Prior to this modern age of investing, picking a brokerage had serious financial implications, with platforms varying significantly in net cost to the investor. Thanks to the advent of connectivity technologies, free mobile investment apps entered the scene, forcing everyone to compete accordingly.
Today, incentives to join, such as commission-free trading, are largely the same across the board. Therefore, your brokerage choice boils down to personal needs. For instance, if you work a demanding career, you may find that a mobile trading app runs just fine. But if you want to build your investing acumen, you should opt for a comprehensive platform. - Decide how many shares you want.
Your share count determines your risk-reward profile for a particular stock. Logically, the more shares you own, the more profitable you will be should the stock rise in value. Conversely, if the stock drops, a higher share count will proportionately affect your portfolio. Therefore, only bet big with your highest-conviction ideas.
Whatever you decide, make sure to thoughtfully consider your exposure and stick to it. Never make major decisions emotionally as they usually turn out poorly. - Choose your order type.
You need to choose which order types to deploy due to the constantly fluctuating valuations in the stock market. Also, understand these core principles before making your first transaction.
• Bid: The bid is the maximum price a buyer will offer for a stock. It is always lower than the ask.
• Ask: In contrast, the ask is the minimum price that a seller will accept. It is always higher than the bid.
• Spread: The spread represents the difference between the bid and ask. It’s also a real-time indicator of liquidity and risk. Narrower spreads indicate higher liquidity levels and therefore lower risk because plenty of buyers exist that want your shares. Wider spreads signal lower liquidity and higher risk due to lack of available buyers.
• Limit order: Choose a limit order to buy stock at a specific price. Please note that there’s no guarantee that the stock will reach the predetermined price.
• Market order: To buy shares at the going rate, use a market order, which will fulfill at the next available price. The terms are least favorable to you. Buy orders on the ask, sell orders on the bid.
• Stop-loss order: Stop-loss orders automatically exit you out of your holdings at either a predetermined price or the next available price, whichever comes 1st. Failure to execute at the predetermined price can occur during a gap-down session, where the opening price is lower than the prior day’s close, resulting in execution at an unexpectedly low price.
• Stop-limit order: In contrast, stop-limit orders exit you only at a predetermined price, which offers maximum transparency. But if the stock continues falling and thus never triggers the stop-limit order, you would have been better off with a stop-loss order. - Execute your trade.
To execute a market order, take these steps:
1. Select 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 steps above for limit orders, with the exception that you must enter your desired execution price.
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Pharmaceutical Stocks for the New Normal
Vaccine research and development is always relevant, which supports the case for investing in Valneva (NASDAQ: VALN). With COVID-19 changing how we view microbiological threats, VALN could enjoy substantial bullish backing. Further, Valneva is on the frontline of helping to prevent the next, quite preventable, pandemic.
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.