Virpax Pharmaceuticals (VRPX) Stock

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Contributor, Benzinga
August 23, 2021
Last update: 4:37PM (Delayed 15-Minutes)
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Vol / Avg.11.455K / 23.963KMkt Cap5.153M
Day Range3.000 - 3.30052 Wk Range2.402 - 11.774

Virpax Pharmaceuticals (NASDAQ: VRPX) specializes in developing novel and proprietary drug delivery systems across various pain indications to enhance compliance and optimize the ability of each non-addictive product in its pipeline. Virpax uses its drug delivery technologies to develop a pipeline of proprietary prescription candidates for commercialization. Products for pain management reach a wide range of people, but the stock market determines the fair price of the asset.

Shares of Virpax have been trending throughout different chats with shares up almost 400% over 2 days. The 52-week moving average went from 3.70 to 35.22 with an average moving volume of 4.8 million shares in mid-August, 2021. On August 17, 2021, volume skyrocketed by almost 300%. 

Benzinga Pro released news that Virpax received a written pre-investigational new drug response from the U.S. Food and Drug Administration (FDA) for its innovative product, MMS019. MMS019 is Virpax’s patented and proprietary high-density molecular masking spray under development for use as an anti-viral barrier product. 

The company said it believes the results of the pre-investigational new drug response support further research on MMS019 as an intranasal protective that may limit the transmission of viruses to others. Virpax expects to move forward and pursue a New Drug Application (NDA) for MMS019 as a once daily intranasal treatment. The FDA has indicated that Virpax may pursue an NDA drug approval with the Office of Non-Prescription Drugs.

Virpax, located in Berwyn, Pennsylvania, focuses on developing novel and proprietary drug delivery systems to manage pain. Its proprietary pipeline is well positioned to meet unmet needs in a multi-billion dollar market.

If you are interested in investing Virpax and its pain control products, learn how to buy below. Remember, candidates for pain management could stream in, but will market participants remain bullish?

How to Buy VRPX

Virpax Pahrmaceuticals Inc has attracted increasing interest from many retail traders and bigger institutions. In the Benzinga Pro chat, it seemed to create much discussion among the traders in the chat. Part of the reason for the conversation was that Virpax released good news; however, the main reason for the intense posting was the low float on VRPX. On Benzinga Pro, the float was documented at 2.04 million shares. 

It seems to be that the current trend of this market is to pick stocks with lower float when good news about the company is published. Lower float generally pushes stock prices higher if enough buyers are in demand. That's what happened with VRPX. Good news, low float and buyers in control drove its price upward. It then ran 300% in 1 day, being halted 3 times during the day.

Before investing in VRPX, review these steps on how to buy this stock. It is important to know the various order types and be aware of the promotions brokerages offer on these financial instruments.

  1. Pick a brokerage. Before you can invest in any company, you need to choose a brokerage to execute your trades. Now that most brokers have moved away from a commission-based model, you can purchase VRPX shares free of charge — regardless of which broker you choose.

Define your strategy, then choose a brokerage that offers the necessary tools to carry out your investing strategy. If you need practice before putting your hard-earned money to work, select a brokerage that offers paper trading. 

Finally, pay attention to promotional offers from brokerages. You may end up with bonus funds to trade with, a free stock for you and your friends or numerous other potential benefits. 

  1. Decide how many shares you want. Once you select a broker, decide how many shares of VRPX you want to buy. Some factors to consider include your age, time horizon, risk tolerance and reasonable expectations for the future of the company. 

Investing more than a small percentage of your funds in 1 company is extremely risky. Before placing a buy order with your broker, determine how much money you want to risk, when you will sell on the upside to take profits and when you will sell on the downside. One option is a stop-loss order to protect your funds. 

By looking at the chart and answering these important questions, you can find a favorable price point and purchase VRPX.

  1. Choose your order type. After determining how many shares of VRPX you want to buy, your job as an investor is not complete. You need to decide which order type to use. 

The most basic order type is the market order, which fills your order at the current market price. This order type is best used when you are buying a stock with low volatility and trying to do it instantly. 

If you want to better define your risk, you should use a limit order instead, which allows you to purchase shares at a set price or lower. When trading an extremely volatile stock like VRPX, it may be beneficial to use a limit order because this buying technique prevents your buy order from being filled at a price point that results in being down in the stock from the very beginning.

  1. Execute your trade. Once you’ve determined the appropriate order type to use, all you need to do is submit your buy order to your broker or hit “buy” in your online brokerage account and wait for your order to process. Once the order fills, your shares of VRPX should appear in your brokerage account. 
Benzinga Pro on August 20, 2021

Pros to Buying VRPX

  • Advancement: VRPX made its big move in August 2021 without significant news regarding its drug approval status or medical studies. Doing due diligence on this company, you can see it wants to advance in the pain management sector.  MMS019 and its other products look good and should improve in future months. Its products will likely continue to be in demand as it is unrealistic to expect that the pain the human body experiences will go away any time soon. 
  • Low Float: Trading low caps has its benefits when you take into account the float on a specific stock. VRPX has a substantially low amount of shares, being at 2.04 in August 2021. 

Cons to Buying VRPX

  • Sell-Off: VRPX reached 400% in mid-August 2021. On August 18, 2021, it ran to a high of 108% premarket. In today's market, those levels are rare considering stocks may be heavily shorted. Once the market opened that day, it knifed downward. The high of the day at $33 deteriorated to the low $20s. 

Soaring High with Virpax Pharmaceutical 

A 400% runner in just 2 days is something spectacular to watch in the month of August. Many investors believe that August is the slowest and driest month. This stock had other plans. With that being said, VRPX is a must-add to the watchlist. It has shown the potential for high volatility and sharp gaps up, and it has the potential to run up again and potentially become your preferred stock.