Adding Aditxt (ADTX) to the upcoming “2022 Biotech 6-Pack, Stocks We Expect to Double” Watch List.
We’re sitting in a hotel room in Chicago minding our own business – then as has happened nearly every year since 1987 when we first started hunting for ‘indiscriminate’ tax-loss candidates the last week of the year – BOOM – Aditxt gets banged and but good. And with enough volume for speculators to grab a meaningful stake. 7 million shares traded so far.
Yes, it’s a weird name, but we saw their presentation at an investor conference and loved what we heard. Then we had lunch with the CEO Amro Albanna the next day, and loved it even more.
Something though told us to wait.
REDDITT TRADERS FIND IT
Last fall, due to a couple CVID related stories, the company lost all control of its shareholder base, and it was a sight to see. Like 36 foxes in a chicken coup with 13 chickens. Feathers everywhere!
LONGER TERM CHART
So, what was all the hubbub about?
Well, it’s a real long story, but they have a working test called AditxtScore™ which can tell you what level of immunity you have. So, if your debating getting a booster shot, the test can say – hurry get the booster or nah – just take your chances. We think it should be called ImmunityScore – but that’s neither here nor there.
AditxtScore™ offers a significant view of the immune system in a single test, rather than the current method of relying on multiple tests that lack insights into long-term immunity. The platform can also identify cellular responses, including determination of T cell activation, cytokine production, and B cell receptors (indicative of memory cells).
They have a lot of other early-stage shots on goal. including an oral antiviral drug targeting COVID-19 -which attracted the traders. But we think a successful roll-out of the immunity test has the most potential, near term.
So, what’s the gig?
If everything goes wrong, we have $0.55 downside (aka 100%). If everything goes right and a great number of consumers hear about and then buy the inexpensive test to understand their level of immunity against Covid and other nasties? We think $5.50* or ten-fold higher. And that ain’t a bad risk/reward ratio.
One Wall Street firm covering, with a $6.00 price target.
Not a trade, we think this needs two years to fully flower!
Now before we say anything else, past performance is NO guarantee or even indication of future performance — but DANG we did good with the.
ABVC (ABVC) $3.30 to $29 up 779%
Citius Pharma (CTXR) $1.02 to $4.56 up 298%
Dicerna (DRNA) $20 to $40.14 up 100%
Dyadic (DYAI) $5.91 to $10.35 (okay close) up 75%
Fortress Bio (FBIO) $2.70 to $6.10 up 125%
Immunomedics (IMMU) $18.78 to $88 (acquired) up 222%
Those are peak prices, with no buy-sell guidance from us. Six out of six winners, and five out of six gaining 100% ain’t bad right?
SHORT TERM CHART
MOST RECENT UPDATE WITH $6.OO PRICE TARGET
“Aditxt has been busy. The company is acquiring a “point of care” rapid diagnostic for Covid (as well as other indications). We see this as complementary to the recent AiPharma acquisition, which provides access to a Covid anti-viral.”
“This coupled with the recent raise ($17M) strengthens the company’s balance sheet and in total positions Aditxt as a one-stop provider from point of care, immune score, and therapeutic intervention. We have adjusted our model for the raise (reflecting the increased number of shares) and we include risk-adjusted revenues for point of care testing and a Covid Therapeutic. The net effect is our price target now rises, from $4.00 to $6.00.“
*$5.50 is not a price target, it’s a guesstimate.
HAPPY HOLIDAYS FROM CHICAGO
Aditxt Co-Founder and CEO Amro Albanna commented, “We are taking steps that we believe will transform Aditxt into a fully-integrated commercial-stage global biopharmaceutical business, with focus on all aspects of immune diagnosis and therapeutics. The proposed transaction with AiPharma would commercially establish Aditxt in the infectious disease space complementing our current therapeutic programs in autoimmunity, dermatology, organ transplantation, and central nervous system.
This transaction mirrors the parallel steps we are taking in immune diagnosis with the recently announced intent to acquire a company in the Point-of-Care space which would technologically and commercially complement AditxtScore™. These combined transactions would allow us to execute our strategy of growth, global expansion, and product portfolio diversification, consistent with our priorities to advance our immune monitoring and treatment technologies to advance human health globally. We look forward to working with the AiPharma team to bring valuable therapeutic options to extend and improve the quality of life of millions of patients.”
“Since our launch, AiPharma has worked to develop and deliver transformative solutions to patients around the world. We remain committed and steadfast in bringing an effective broad spectrum anti-viral treatment to the market while leveraging our strong pipeline of opportunities and our commercial network,” stated Alessandro Gadotti, Chief Executive Officer of AiPharma. “The acquisition of AiPharma, with our strong commercial portfolio and robust pipeline, will support Aditxt’s near-term ambition to develop novel therapies and technologies in areas of immunology with a high unmet medical need. We are delighted at the prospect of being acquired by Aditxt at this exciting juncture in their journey; AiPharma will help fuel strategic growth and deliver future pipeline and M&A activities so that even more patients can access critical medicines and technologies now and in the future.”
The description of the proposed transaction contained herein is only a high-level summary. Additional information about the proposed transaction, including a copy of the share exchange agreement, will be provided in a Current Report on Form 8-K to be filed by Aditxt with the Securities and Exchange Commission (“SEC”) and available at the SEC’s website at www.sec.gov. In addition, Aditxt intends to file a registration statement on Form S-4 with the SEC, including a proxy statement/prospectus, and will file other documents regarding the proposed transaction with the SEC.
The definitive agreement follows Aditxt’s prior announcement on August 25, 2021, of its intention to acquire AiPharma and Aditxt’s bridge loan funding to AiPharma, subject to certain closing conditions. There is no assurance that Aditxt’s acquisition of AiPharma will be completed.
Aditxt is developing technologies focused on improving the immune system’s health through immune monitoring and reprogramming. Aditxt’s immune monitoring technology is designed to provide a personalized, comprehensive immune system profile. Aditxt’s immune reprogramming technology is currently at the pre-clinical stage. It is designed to retrain the immune system to induce tolerance to address rejection of transplanted organs, autoimmune diseases, and allergies.
For more information, please visit: www.aditxt.com.
AiPharma is a commercial-stage biopharmaceutical company focused on developing oral therapies to address the unmet medical needs of patients with life-threatening viral diseases. Leveraging a deep understanding of antiviral drug development, nucleotide chemistry, biology, biochemistry, and virology, AiPharma has built a nucleotide prodrug platform to develop novel product candidates to treat single-stranded ribonucleic acid, or ssRNA, viruses, which are a prevalent cause of severe viral diseases. Currently, AiPharma is focused on the clinical and commercial development of orally available, potent, and selective nucleotide prodrugs for difficult-to-treat, life-threatening viral infections, including severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2), the virus that causes COVID-19, dengue virus, hepatitis C virus (HCV) and respiratory syncytial virus (RSV).
AiPharma holds directly, or through its affiliates worldwide (excluding Japan), exclusive rights to Avigan (Favipiravir) and all other formulations of the molecule. This broad-spectrum oral antiviral drug targets COVID-19 and 11 classes of infectious diseases. Regulatory approval for the indication of COVID-19 and/or influenza has been granted in Mexico, Japan, Thailand, Malaysia, UAE, Morocco, Indonesia, India, and United Arab Emirates. Countries purchasing on a Compassionate Patient Basis include the United Kingdom, Hungary, and Saudi Arabia.
For more information, please visit www.aipharmalab.com.
Important Information About the Proposed Transaction and Where to Find It
This press release relates to a proposed transaction between Aditxt and AiPharma. This press release does not constitute an offer to sell or exchange, or the solicitation of an offer to buy or exchange, any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, sale, or exchange would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. In connection with the transaction described herein, Aditxt intends to file relevant materials with the SEC including a registration statement on Form S-4, which will include a prospectus with respect to the combined company’s securities to be issued in connection with the business combination and a proxy statement with respect to the stockholder meeting of Aditxt to vote on the business combination. Promptly after the registration statement is declared effective by the SEC, Aditxt will mail the definitive proxy statement/prospectus and a proxy card to each stockholder as record date for the meeting of Aditxt’s stockholders be established for voting on the proposed business combination. Aditxt urges its investors, stockholders, and other interested persons to read, when available, the preliminary proxy statement/prospectus as well as other documents filed with the SEC because these documents will contain important information about Aditxt, AiPharma, and the business combination. Once available, stockholders will also be able to obtain a copy of the Form S-4, including the proxy statement/prospectus, and other documents filed with the SEC without charge, by directing a request to Aditxt, Attn: Amro Albanna, 737 N. Fifth Street, Suite 200, Richmond, VA 23219. The preliminary and definitive proxy statement/prospectus to be included in the registration statement, once available, can also be obtained, without charge, at the SEC’s website (www.sec.gov).
Participants in the Solicitation
Aditxt and its directors and executive officers may be deemed participants in the solicitation of proxies from Aditxt’s stockholders concerning the business combination. Information about Aditxt’s directors and executive officers and a description of their interests in Aditxt will be included in the proxy statement/prospectus for the proposed transaction and be available at the SEC’s website (www.sec.gov).
Certain statements in this press release constitute “forward-looking statements” within the meaning of federal securities laws. Forward-looking statements include statements regarding the Aditxt’s (the “Company”) intentions, beliefs, projections, outlook, analyses, or current expectations concerning, among other things, the Company’s ongoing and planned product and business development; the Company’s intellectual property position; the Company’s ability to develop commercial functions; expectations regarding product launch and revenue; the Company’s results of operations, cash needs, spending, financial condition, liquidity, prospects, growth and strategies; the industry in which the Company operates; and the trends that may affect the industry or the Company. These forward-looking statements are subject to a number of risks including, but not limited to, the following risks relating to the proposed transaction: (1) the risk that the proposed transaction may not be completed in a timely manner or at all, which may adversely affect the price of Aditxt’s securities; (2) the failure to satisfy the conditions to closing the proposed transaction, including the approval by the stockholders of Aditxt and AiPharma; (3) the outcome of any legal proceedings that may be instituted related to the proposed transaction; (4) the ability to realize the anticipated benefits of the proposed transaction; (5) the risk that the product candidates that AiPharma is developing may not progress through clinical development or receive regulatory approvals within expected timelines or at all; (6) the risk that AiPharma’s clinical trials may not confirm any safety, efficacy or other product characteristics that would enable subsequent clinical trials; (7) the risk that AiPharma will be unable to successfully market or gain market acceptance of its product candidates, if approved; (8) the risk that AiPharma’s product candidates may not be beneficial to patients or successfully commercialized, if approved; (9) the risk that AiPharma has overestimated the size of the target patient population, their willingness to try new therapies and the willingness of physicians to prescribe these therapies; (10) the effects of competition on AiPharma’s business; (11) the risk that third parties on which AiPharma depends for clinical trials and other critical services will fail to perform satisfactorily; (12) the risk that AiPharma may not be able to recruit and retain qualified personnel; (13) the risk that AiPharma’s business, operations, clinical development plans and timelines, and supply chain could be adversely affected by the effects of health epidemics, including the ongoing COVID-19 pandemic; (14) the risk that AiPharma will be unable to obtain and maintain sufficient intellectual property protection for its drug products or will infringe the intellectual property protection of others; (15) the risk the combined company will fail to realize the anticipated benefits of the proposed transaction; and (16) other risks and uncertainties indicated from time to time in AiPharma’s public filings with the SEC. If any of these risks materialize or Aditxt’s and AiPharma’s assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that neither Aditxt nor AiPharma presently knows, or that Aditxt or AiPharma currently believe are immaterial. That could also cause actual results to differ from those contained in the forward-looking statements. In addition, forward-looking statements reflect Aditxt’s and AiPharma’s expectations, plans, or forecasts of future events and views as of the date of this press release. Aditxt and AiPharma anticipate that subsequent events and developments will cause Aditxt’s and AiPharma’s assessments. However, while Aditxt and AiPharma may elect to update these forward-looking statements at some point in the future, Aditxt and AiPharma specifically disclaim any obligation to do so, except as otherwise required by law. These forward-looking statements should not be relied upon as representing Aditxt’s and AiPharma’s assessments of any date after the date of this press release. Accordingly, undue reliance should not be placed upon the forward-looking statements. Forward-looking statements are not guarantees of future performance, and actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors, as well as those risks more fully discussed in the section titled “Risk Factors” in the Company’s most recent Annual Report on Form 10-K, as well as discussions of potential risks, uncertainties, and other essential factors in the Company’s other filings with the Securities and Exchange Commission. All such statements speak only as of the date made. The Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events, or otherwise.
View source version on businesswire.com: https://www.businesswire.com/news/home/20211228005109/en/
Media and Investor Relations Contact:
Aditxt Investor Communications
Not a client (yet) – maybe in 2022!