Long BIOA: The biotech company whose cash reserves are more than double its market cap, which also possess a prized hidden asset which makes it a ripe acquisition target
Do your own due diligence.
Ragnarok Research is long Bioage Labs for a few simple reasons. Amidst Trump’s tariff debacle, we want to stick to absurdly cheap companies who are undervalued on an absolute basis, rather than a ‘relative’ basis. By buying BIOA, we are playing defense- and is a reflection of our strategy of transitioning from growth plays to cheap, undervalued ‘cigar butts’. Bioage is a rare company which holds value both in its balance sheet, and future growth prospects of its income statement. Our price target is a 7$/sh.
Why does this opportunity exist?
In December 2024, shares of BioAge Labs (NASDAQ: BIOA) tumbled significantly—dropping by over 76%—primarily because the company abruptly halted its STRIDES Phase 2 clinical trial for its experimental obesity drug candidate, Azelaprag. The trial was discontinued after several patients exhibited elevated liver enzymes (liver transaminitis), a safety signal that raised concerns about the tolerability and risk profile of the drug.
Now, investors thought BIOA has virtually nothing else to offer, prompting in the following share price action:
However, we at Ragnarok Research have bought shares of BIOA because we believe that the 80% dip was a huge overreaction, and that Bioage has an undervalued ‘hidden’ asset that can spur growth in both the income statement in the future, while having a tremendous amount of value in its balance sheet.
Please download the PDF to review our complete thesis
Read Hunterbrook’s original thesis: https://hntrbrk.com/bioa/
