Virax Biolabs: Clinical Progress in PAIS and Extended Cash Runway Support Reiterated Buy Rating Despite Lowered Price Target

In a report released today, Yi Chen from H.C. Wainwright reiterated a Buy rating on Virax Biolabs Group Ltd. Class A, with a price target of $1.00.

Yi Chen has given his Buy rating due to a combination of factors related to Virax Biolabs’ clinical progress, market opportunity, and financial position. He highlights that the company’s lead diagnostic, ViraxImmune, is specifically designed to address post-acute infection syndromes such as long COVID, ME/CFS, and post-treatment Lyme disease, an area with significant unmet medical need. Key upcoming milestones include initial data from the fully enrolled UK PAIS study (VRX-002) expected in 2Q26, which could support a regulatory submission to the MHRA and shape broader regulatory strategies. In addition, mechanistic findings showing ongoing T cell dysfunction in PAIS patients align with ViraxImmune’s intended role, reinforcing the scientific rationale behind the product.

Chen also notes that a second UK study (VRX-003) has completed enrollment, and a research agreement with Emory University is in place to initiate U.S. clinical work in long COVID, using prior FDA feedback to refine study design and regulatory planning. On the financial side, he points out that recent capital raised via private placement, combined with existing cash, provides an estimated runway into the first half of 2028, though additional financing is likely within a year. Based on an implied firm value of roughly $26 million and updated share-count projections, he arrives at a 12‑month price target of $1 per share. These clinical, regulatory, and financial considerations together support his decision to reiterate a Buy rating despite lowering the target price from prior levels.