- The Firebrick Pharma share price is up an additional 22% today
- Shares in the company reached a new all-time high of 75 cents a piece
- Investors take a chance on the pre-revenue nasal spray developer
The Firebrick Pharma Limited (ASX: FRE) share price is figuratively on fire once again on Monday. Continuing its green streak following its successful initial public offering (IPO) and listing on Friday, Firebrick is soaring again on its second day of trading.
At the time of writing, shares in the nasal spray developer are up 22.6% to 65 cents per share. However, earlier in trade the company had reached a new all-time high of 75 cents per share.
The further surge in the newly listed pharmaceutical company's valuation now prices it 3.25 times higher than its original offer price.
What's going on with the Firebrick share price today?
The excitement surrounding Firebrick's debut on the ASX has extended into Monday following the weekend. However, there is no new information today that we didn't already know on Friday. Instead, it appears the market is still grappling with what fair value is for the company's shares.
We covered Firebrick's IPO previously, but for a quick refresher — the company has developed its patented Nasodine nasal spray product. This medicine is targeted to treat viruses that cause the common cold via the nose. Currently, the company's product is in clinical trials, with plans to have it approved by regulators in the future.
Additionally, Firebrick's interest in testing the nasal spray against COVID-19 likely has garnered added attention from investors. This will be conducted in a phase 2 clinical trial this year. Fortunately, the company now has $7 million in its piggy bank to fund these trials following its IPO.
Nonetheless, the volatility in the Firebrick share price is likely partly attributable to the pre-revenue nature of the business.
According to the prospectus, the company's income for the year ended 30 June 2021 totalled ~$423,000. This was predominantly from a research and development tax rebate. Meanwhile, expenses rounded out at around $2.86 million for the period. As a result, Firebrick burnt $2.44 million in FY21.
Based on the current Firebrick share price, the pharmaceutical company is valued at $69 million.