Bionomics has filed to go public on the NASDAQ, attracting investors including Peter Thiel and partnering with Merck Pharmaceuticals
Nov. 23, 2021
Bionomics is a biopharmaceuticals company based out of Adelaide, Australia. Its research focuses on the treatment of central nervous systems (CNS) disorders such as Alzheimer’s, post-traumatic stress disorder (PTSD), attention-deficit / hyperactivity disorder (ADHD), autism spectrum disorder (ASD), cognitive impairment associated with schizophrenia (CIAS), anxiety, depression, as well as cancer research. Its treatment attempting to solve these health issues is its BNC210 formula.
When can I buy Bionomics stock?
Bionomics has filed its initial public offering with the Securities and Exchange Commission (SEC) on November 22, 2021, and it intends to trade under the ticker symbol BNOX, but a date has not yet been confirmed. Currently, Bionomics is traded over-the-counter in U.S. markets under the ticker BNOEF, and it is listed on the home Australian exchange as BNO.AS. The number of shares and details on the issuance price has not been revealed.
Bionomics Financials
Due to the nature of the company, it is currently operating at a loss because of substantial research and development costs. To be clear, it is conducting trials on its proposed treatments in the hope that it will receive FDA approval.
This would allow Bionomics to streamline its patented BNC210 formula into production to treat the aforementioned illnesses, and it already has an affiliation with the global pharmaceutical company Merck & Co (NYSE: MRK).
It is extremely important for investors to know this is a “micro-cap” company or “penny stock”, with a market cap of circa $100 million, and these investments, particularly when relating to clinical trials, pose extreme risk. These types of stocks often see rapid increases and declines in price action based on their FDA outcomes.
Bionomics Growth Potential
Current research has gone well, although samples sizes remain quite small, with only 400 subject exposures and 12 clinical trials, according to Bionomics’ most recent investor presentation. Reuters has also reported that Bionomics has received FDA clearance for a Phase 2 Study for its BNC210 formula in treating social anxiety disorder (SAD).
SAD is:
“recognized as one of the most prevalent mental health conditions today affecting >25M Americans”
It also has a methylenedioxy-methamphetamine (MDMA) breakthrough designation granted by the FDA and its manufacturing patents stretch into the 2030s.
A point to note for investors interested in the pharmaceutical sector is that patents are generally granted on a 10-20 year basis, and thereafter, all companies in the industry can engage in the sale of the treatment medication. For those unaware of the FDA approval process, there are five stages to complete for FDA approval, including a final stage which is post-market drug safety marketing, when the treatments become available to the public.
The global mental health market is expected to be worth $538 billion by 2030, and the CNS therapeutic market is projected to grow at a 7.4% compound annual growth rate (CAGR) and reach a value of $205 billion by 2030 alone. Although this is a huge opportunity for Bionomics and it has an admirable mission to bring solutions to those struggling, the reasons outlined above mean this is an extremely speculative investment for the time being and investors should definitely remain cautious.
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