Is Jupiter Neurosciences Inc. IPO a Good Buy?

Among the most debilitating chronic conditions, Alzheimer’s disease (AD) imposes a human and economic cost to society. According to the Alzheimer's Association, more than 6 million Americans of all ages suffer from the ailment — and the figure is growing fast. Advanced biotechnology and pharmaceutical firms have been racing for a solution, with clinical-stage research and development company Jupiter Neurosciences Inc. set to raise funds in a public listing to support Alzheimer’s-related initiatives.

For starters, the need for a solution to neurodegenerative disease has increased over the years. Currently, 1 in 3 senior citizens dies with AD or another form of dementia. The condition kills more people than breast cancer and prostate cancer combined. On the economic front, AD and other types of dementia will cost the nation $321 billion in 2022. Experts project that by 2050, these costs could hit nearly $1 trillion.

In addition, more than 11 million people provide care to AD patients without financial compensation. Estimates indicate that in 2021, caregivers provided more than 16 billion hours of care valued at nearly $272 billion. Finding a solution to AD and the broader dementia spectrum may yield significant social and economic efficiencies.

Jupiter Neuroscience aims to mitigate the symptoms associated with AD through its key therapeutic, JOTROL. Representing a novel oral formulation of resveratrol, JOTROL in clinical studies has demonstrated “increased pharmacokinetic properties compared to non formulated resveratrol in animals and in humans.”

What makes the underlying resveratrol so compelling is that it’s a known commodity in the scientific research space. A polyphenol antioxidant found in plants, several scientists have theorized that resveratrol affects several AD-related and neuroprotective genes. However, because this particular antioxidant is not found naturally in high concentrations, Jupiter filled the opportunity gap with a specialized oral formulation.

Though the backdrop for Jupiter’s initial public offering (IPO) — or the first time a private enterprise distributes its shares to retail investors — appears compelling, investors will want to conduct thorough research before participating.

Below are the key pros and cons to consider.

What Does Jupiter Neurosciences Do?

According to the organization’s Form S-1 filed with the U.S. Securities and Exchange Commission (SEC), Jupiter Neurosciences is a “clinical-stage research and development pharmaceutical company located in Jupiter, Florida. The company incorporated in Delaware in January 2016.”

Its main innovation is the development of “a unique resveratrol platform product primarily targeting treatment of neuro-inflammation.” The product candidate — the trademarked therapeutic JOTROL — features many potential indications of use for rare diseases. Per Jupiter’s IPO disclosure, they include “mucopolysaccharidoses Type 1, Friedreich’s Ataxia and MELAS and with ALS in an earlier development stage.”

In the larger disease areas, Jupiter primarily targets mild cognitive impairment and early AD, along with an early development program in traumatic brain injury (TBI) and concussions.

The principal catalyst for Jupiter’s IPO is that the biotech firm can potentially branch out into several areas. According to WebMD.com, resveratrol “is part of a group of compounds called polyphenols. They’re thought to act like antioxidants, protecting the body against damage that can put you at higher risk for things like cancer and heart disease.”

The medical resource site states that resveratrol is found in the skin of red grapes. In addition, the compound is also in peanuts, red wine and berries.

“It’s gained a lot of attention for its reported anti-aging and disease-fighting powers,” according to WebMD. “Researchers have long believed that substances in red wine might have health benefits. Beginning in the 1990s, experts began to focus on resveratrol, an antioxidant compound in red wine. Since then, some animal and lab studies have shown that resveratrol has promising antiviral, anti-inflammatory and anticancer effects.”

However, Jupiter contends that a “high dose of resveratrol is needed for therapeutic effects.” Therefore, the company is investigating the most effective formulation for the compound to address AD and other rare diseases. Management hopes that its upcoming IPO will raise the necessary funds to support ongoing research.

When is the Jupiter Neurosciences IPO Date?

Based on the latest information, Jupiter Neurosciences has not published a date to go public on the IPO calendar. The company will price the new listing the day before the offering. Shares will trade on the Nasdaq Stock Market under the ticker symbol JUNS. Spartan Capital Securities LLC represents the sole bookrunner for the JUNS stock deal.

According to its initial IPO filing, Jupiter intended to raise about $15.4 million through the distribution of 2.2 million units. The price range at the time was anticipated to be between $6 and $8. However, based on the latest filing, the company will now raise a slightly downgraded $15 million through the distribution of 2.6 million units. The pricing estimate ranges between $5 and $7.

Also, in the prior filing, Roth Capital Partners LLC and Dawson James Securities Inc. represented the joint bookrunners for the public market debut. Per the IPO update, Spartan will be the exclusive bookrunner.

For speculators seeking ground-floor opportunities, the introduction of a potentially game-changing biotech firm may be music to their ears. According to FactSet, the arena for new public listings has been on life support.

IPO activity dropped sharply in the first half of 2022 after 2021’s record-setting pace of initial public offerings, according to FactSet. FactSet reports that 1,073 companies IPO’d in 2021, raising $317 billion; in the first half of 2022, the total was just 92 companies, raising just under $9 billion. In 2023, overall IPO activity in the U.S. remains subdued. Globally, 310 IPOs occurred during Q2 2023, a decline of 3% year-over-year, with proceeds totaling $39 billion, a decline of 5%.

Market participants — irrespective of their risk tolerance — will want to take extra precautions with Jupiter stock. Clinical-stage biotech firms are risky. Forward progress in underlying trials offers zero guarantees. Should the data not meet expectations, shares could tumble quickly.

Hawkish monetary policies raise the value of the dollar on a relative basis. Therefore, an investment opportunity must be particularly compelling for market participants to give up the guaranteed returns of a rising greenback under a hawkish environment.

What Analysts are Saying About Jupiter Neurosciences IPO

As a small new listing, not many analysts have weighed in on the debut of Jupiter stock. Capital.com contributor Andrew Knoll noted the upside potential for the underlying drug JOTROL.

Though the therapeutic remains in clinical trials, Knoll stated that “the once-daily pill offers promise as a potential treatment for Alzheimer’s disease. Its active ingredient is resveratrol, a natural polyphenol found in red grapes, which has shown some effectiveness in combating the advancement of Alzheimer’s. JOTROL delivers a ‘therapeutically effective dose’ without causing digestive or stomach issues, the company said in a news release.”

In addition, Jupiter obtained a patent for JOTROL in 2020, then rebranded the organization to its current name in September 2021 with additions to the company’s executive team shortly after. The major risk factor to Jupiter stock is gaining approval from the U.S. Food and Drug Administration. At this juncture, acquiring the regulatory greenlight appears further on the horizon.

Jupiter Neurosciences Financial History

In 2021, Jupiter generated revenue of $638,037 from federal contracts. This figure was conspicuously below 2020’s sales of $1.13 million. On the bottom line, the company posted a net loss of $4.2 million in 2022, expanding unfavorably from a loss of $1.65 million in 2020.

On the balance sheet, Jupiter has total assets measuring $667,383. On the other end, total liabilities measure $5.85 million. Though clinical-stage biotechs rarely feature robust financials, investors should be aware of the risks that Jupiter may not be able to raise enough cash, especially if trial results don’t go according to plan.

Jupiter Neurosciences Potential

According to Grand View Research, the global AD therapeutics market reached a valuation of just over $4 billion in 2021. However, between 2022 and 2030, experts project the sector to expand at a compound annual growth rate (CAGR) of 16.2%, culminating in annual revenue of $15.6 billion by the end of the forecasted period.

Despite the potential of Jupiter stock, investors should be aware that many biotechs have attempted to address AD and other dementias, only to eventually suffer disappointments. As Science.org noted, it’s not uncommon for pharmaceutical firms to fail in advanced clinical studies in the AD arena.

Given the high risks associated with neurological conditions, investors should adopt a cautious, responsible approach toward Jupiter stock.

Where to Buy Jupiter Neurosciences IPO Stock

If you want to participate in Jupiter Neurosciences’ IPO, you’ll need to know how to buy stocks. But before you take that step, you must sign up for a brokerage account. Below is a list of the best brokers to consider.

JUNS Restrictions for Retail Investors

Review the Financial Industry Regulatory Authority (FINRA) rules on restricted persons before participating in an IPO. Don’t engage if you have privileged information.

Caution for Investors

Jupiter Neurosciences Inc. is an upcoming IPO in the biotechnology sector focusing on therapeutics for Alzheimer's and other rare diseases. While there is potential for its innovative resveratrol-based therapeutic, investors should exercise caution because of the inherent risks of investing in clinical-stage biotechs and the challenges of gaining regulatory approval.

Frequently Asked Questions

JUNS Pre-IPO

Although the pre-IPO window is closed for Jupiter stock, those interested in early bird opportunities should consider opening an account with ClickIPO.com.

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