Is bioAffinity Technologies Inc. IPO a Good Buy?

Read our Advertiser Disclosure.
Contributor, Benzinga
June 14, 2022
$1.61
0.08[5.23%]
Last update: 7:51PM (Delayed 15-Minutes)
Get Real Time Here
Open1.540Close1.520
Vol / Avg.8.885K / 17.090KMkt Cap15.299M
Day Range1.520 - 1.54052 Wk Range0.955 - 2.300
  • Early detection is the key in addressing potentially fatal diseases like cancer, an area that bioAffinity Technologies specializes in.
  • Leveraging an early screening platform for lung cancer and related conditions, bioAffinity aims to improve health outcomes for patients.
  • While an intriguing concept, investors of new public listings must exercise extreme caution, particularly for pre-revenue and small-cap opportunities.

Getting on top of a problem quickly and accurately is the main calling card for bioAffinity Technologies Inc., one of the most innovative biotechnology firms that will soon launch a new public listing. Specializing in the diagnosis of early-stage cancer and diseases of the lung, bioAffinity seeks to improve health outcomes for patients by addressing dangerous conditions before they metastasize. Additionally, bioAffinity owns a subsidiary that engages in targeted oncological therapy.

According to the American Lung Association, the “five-year survival rate for lung cancer is 56 percent for cases detected when the disease is still localized (within the lungs). However, only 16 percent of lung cancer cases are diagnosed at an early stage. For distant tumors (spread to other organs) the five-year survival rate is only 5 percent.” Thus, it’s not just about early detection but also accurate diagnoses.

Here, bioAffinity offers a potential game-changing platform. Using a unique iteration of flow cytometry — a technique deployed to detect and measure physical and chemical characteristics of a population of cells or particles — this advanced biotech firm can accurately find cancer cells through the patient’s sputum or phlegm. The main advantages of this mechanism are high accuracy, relatively low cost and non-invasive.

As well, bioAffinity’s subsidiary, OncoSelect Therapeutics, leverages the principles of flow cytometry to develop targeted therapeutics to fight cancer. By using porphyrins — or cancer-selective molecules — OncoSelect is on the frontlines of novel therapeutics that systemically seek and destroy cancerous cells while leaving normal functioning cells alone.

Essentially, bioAffinity provides a two-pronged attack in the oncology field, improving health outcomes through early detection and targeted therapeutics for those in the later stages of cancer. Still, plenty of biotech prospects have generated excitement only to flounder. Below are the pros and cons to consider.

What Does bioAffinity Technologies Do?

A cancer-diagnostics and oncology specialist, bioAffinity Technologies is on a mission to drastically improve patient outcomes for those suffering from diseases of the lung, particularly lung cancer. To achieve this aim, bioAffinity developed its first diagnostic test called CyPath Lung, which leverages flow cytometry to analyze single cells or particles for accurate detection of cancer and other diseases.

Recently, the company completed a 150-patient test validation trial of medical subjects who are particularly vulnerable for developing lung cancer. The test resulted in overall 88% specificity and 82% sensitivity. In the second quarter of 2022, management revealed that it plans to perform a controlled launch of CyPath Lung in Texas, followed by regional expansion.

By the third quarter of 2023, bioAffinity will be shooting for a staged nationwide expansion of sales and marketing. In addition, below are some of the biotech’s key advantages to consider.

  • Immediate impact: Should CyPath Lung achieve continued clinical (and eventually commercial) successes, the diagnostics platform could have an immediately positive impact, not only for bioAffinity but for the broader healthcare system. Lung cancer is the most economically onerous cancer worldwide, meaning that any mechanism to detect and address this disease early can spark myriad downwind benefits.
  • Two for the money: Under the subsidiary OncoSelect Therapeutics, bioAffinity investors have access to a holistic business that delivers solutions across multiple points in the oncology spectrum. Further, the field of targeted cancer therapeutics is a burgeoning one, especially because traditional methodologies involve brute-force attacks that kill both cancerous and normal cells.
  • Easing fears: Undoubtedly, one of the many reasons why cancer goes undetected until it advances into the later stages is iatrophobia — the fear of doctors. However, because CyPath Lung is non-invasive and relatively convenient to administer, it may help those with varying degrees of iatrophobia, thus broadly improving health outcomes.

Finally, it’s important to point out that CyPath Lung is more of a complementary tool rather than a competing one. With the system, medical doctors are better able to prescribe appropriate regimens for their patients, thus mitigating the potential of unnecessary disruption in the oncology ecosystem.

When is the bioAffinity Technologies IPO Date?

One of a very few though growing number of new listings this year, bioAffinity Technologies is scheduled to launch its initial public offering (IPO) — or the first time a private enterprise distributes its equity shares to retail investors — on June 22. The biotech firm plans to list its stock on the Nasdaq exchange under the ticker symbol BIAF.

According to its amended Form S-1 disclosure with the U.S. Securities and Exchange Commission (SEC), bioAffinity plans to distribute 1.5 million units at an assumed offering price of $6.75. This setup would entail a raise of $10.1 million, though earlier reports regarding the IPO suggested that management was seeking to raise up to $15 million. WallachBeth Capital represents the sole bookrunner for the deal.

Administratively, the debut of BIAF stock presents an interesting dynamic. On the positive front, bioAffinity is one of the few new listings that will print its name on the IPO calendar. With so few companies making their public market debuts because of troubling economic conditions so far in 2022, speculative investors will be more likely to pay attention.

On the other hand, troubling economic conditions don’t exactly make for an encouraging backdrop to participate in IPOs, which are risky during the best of times. Specifically, the Federal Reserve is poised to raise the benchmark interest rate, spelling trouble for an equities sector already reeling from inflationary pressures.

Add in the point that this IPO is a small raise for a micro-capitalization firm and BIAF stock could possibly be an eventful investment — but not in a positive way.

What Analysts are Saying About bioAffinity Technologies IPO

As a very small biotech outfit, few analysts have bioAffinity on their radar. To be blunt, this basis alone is enough to strongly imply that BIAF stock is not an appropriate opportunity for everyone. Nevertheless, if you’re looking for a name to add to your portfolio that’s earmarked for speculation, BIAF could be interesting.

Perhaps the most important potential catalyst for bioAffinity is the market growth rate. According to data provided by Global Industry Analysts, Inc., the broader push for early detection protocols has increased global demand for lung cancer diagnostics. Therefore, experts in the field project that worldwide demand should hit $3.4 billion by 2026. Of this portion, the U.S. diagnostics segment is expected to reach a valuation of $843.4 million.

Another aspect bolstering bioAffinity is increased demand for rapid-diagnosis tests. This circumstance arrived rather fortuitously for the biotech firm as the COVID-19 pandemic raised awareness for the importance and viability of the medical diagnostics industry. And because the underlying CyPath Lung platform is non-invasive, user integration should be more welcomed.

However, bioAffinity also lags from key headwinds that prospective investors should not ignore. On a fundamental basis, the company does not enjoy complete product certification, meaning that regulatory challenges still exist. As well, bioAffinity is largely an aspirational enterprise, with most of its products in the early development stage.

bioAffinity Technologies Financial History

As with any aspirational biotech firm, the tipping point between participation and sitting on the sidelines comes down to the financials. For bioAffinity, the situation isn’t exactly pleasant and that’s based on its own risk disclosures.

Per the company’s Form S-1, since its inception in 2014, bioAffinity has generated zero sales of its CyPath Lung test, and it has funded its operations principally through private sales of equity or debt securities. Further, the company has never been profitable and as of March 31, 2022, has an accumulated deficit of $30 million.

bioAffinity Technologies Potential

The potential of BIAF stock rests on the clinical and commercial success of CyPath Lung. While OncoSelect Therapeutics’ targeted cancer-treatment protocol is exciting, it’s also reaching for the stars. Realistically, the lung-cancer diagnostics platform features greater appeal from a relatively strong track record and the ability to promote broadly positive health outcomes.

At the same time, if every piece of marketing literature from the biotech industry rang true, society at large would presumably have eliminated a vast number of debilitating diseases and conditions. Which is to say that the sector tends to promise much but deliver little in the grand scheme of things.

Ultimately, it’s of utmost importance that prospective investors conduct due diligence before wading into this volatile arena.

Where to Buy bioAffinity Technologies IPO Stock

If you want to participate in bioAffinity’s IPO, you’ll need to know how to buy stocks. But before you take that step, you must sign up for a brokerage account. Below is a list of best brokers to consider.

BIAF 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.

BIAF Pre-IPO

Those interested in acquiring shares of bioAffinity Technologies on a pre-IPO basis — or shares at their initial offering price — can open an account with ClickIPO. Keep in mind that while buying at this favorable rate is initially advantageous, the market always has the last word.

Join our IPO Newsletter for FREE