As of market-open today, shares in Population Health Investment will be available to purchase on the Nasdaq stock exchange, but should you buy?
Nov. 18, 2020
Population Health Investment (PHICU) is a special purpose acquisition company (SPAC) that is set to target therapeutic businesses. It filed for an initial public offering (IPO) with the Securities and Exchange Commission (SEC) on September 24, 2020. The company was founded this year and its offices are based in New York. Population Health Investment plans to list on the Nasdaq after filing confidentially with J.P. Morgan as the sole bookrunner on the deal.
What is Population Health Investments stock symbol?
Population Health Investment will begin trading at 9:30 am EST under the ticker symbol PHICU.
How much does Population Health Investment stock cost per share?
The New York City-based company plans to raise $150 million in an IPO by offering 15 million units at $10 per share. Each unit consists of one Class A ordinary share and one-third of one redeemable warrant, exercisable at $11.50. This proposed deal size would warrant the company a market value of $188 million.
What does Population Health Investment do?
Population Health Investment is a newly formed SPAC that is targeting a therapeutic business. A SPAC, or blank check company, is one that has no specific business plan yet or has indicated its business purpose is to engage in a merger or acquisition with an unidentified company, entity, or individual.
Population Health Investment is led by CEO Dr. Clive Meanwell, a founding partner who also founded The Medicines Company in 1996. Dr. Meanwell has previously been a member of industry boards, including the Pharmaceutical Research Manufacturers of America (PhRMA), Biotechnology Innovation Organization (BIO), and was also an advisor to President Obama’s Council of Advisors on Science and Technology.
Ian Read, who was CEO of Pfizer from 2010 to 2019, is the Executive Chairman of Population Health Investment. During his time at Pfizer, he oversaw over 30 new drug approvals, $88 billion in acquisition and deals, and a total shareholder return of 250%, representing $242 billion in value creation.
Chris Visioli, who served as the CFO of The Medicines Company, will take the same position at Population Health. The therapeutic-focused company aims to capitalize on the previous experience of the founders and management to target the healthcare industry in the U.S and other developed countries.
Should I buy shares in Population Health Investment?
When investing in a SPAC like this company, the most important thing for investors to be aware of is that you will not know what private company will eventually be acquired, or if any company will be at all. As with other SPACs, the most prudent thing is to analyze the management of the company and determine if you trust the company to make a good acquisition deal.
It also really depends on your risk attitude, as this investment may be an uncertain one. In the company’s registration of securities report, Population Health Investment stated that they are an ’emerging growth company’ and explained that investing in their securities involved a high degree of risk.
However, the company does have strong leadership from well-known members in the pharmaceutical industry. Population Health Investment believes that their widely-respected capabilities as senior leaders in the pharma and biopharmaceuticals sector will allow them to provide a high-quality business combination that promises to deliver value for shareholders. Population Health Investment said that their co-founders have a distinguished track record in operational and strategic leadership roles that they believe provide the company with a strong competitive advantage.
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