H.C. Wainwright initiated coverage on Virax Biolabs Group Limited ( VRAX ) , a U.K.-based company focused on detecting immune responses and diagnosing viral diseases.

Virax Biolabs ( VRAX ) is developing T cell-based test technologies to provide an immunology profiling platform. T-cell testing can be particularly effective in diagnosing and therapeutics for post-viral syndromes (such as Long COVID and other chronic conditions linked to immune dysregulation).

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The ViraxImmune platform is developing an adaptable test to detect the body's immune response to various conditions associated with chronic inflammation and T-cell exhaustion. Utilizing peptide pools to activate memory T cells and measure specific cytokine profiles related to various infections, ViraxImmune is designed to address multiple diseases and research needs.

The ViraxImmune platform will be available initially for research use only (RUO) before in vitro diagnostics (IVD) approval. It can analyze the activation of cells involved in the immune response, providing unparalleled insights into complex diseases and infections.

Analyst Yi Chen writes that Virax is slated to meet with the FDA in mid-2025 to define the approval pathway and potentially begin a U.S.-based clinical validation study in the second half of 2025.

The analyst has initiated with a Buy rating and a price target of $3.

HC Wainwright writes that Virax estimates that between 254,000 and 301,000 patients annually could benefit from Virax T cell exhaustion-based IVD.

The analyst estimates that long COVID cases alone could create a diagnostics market worth hundreds of millions of dollars. Meanwhile, there are currently no reliable tests for conditions linked to post-acute infection syndrome (PAIS).

“Therefore, we believe there is an attractive market opportunity for ViraxImmune-based diagnostic tests,” analyst Chen writes.

Earlier in March, Virax Biolabs ( VRAX ) started enrolling patients into its United Kingdom-based, multi-center clinical study to assess the ViraxImmune FluoroSpot T cell assay performance in detecting T cell dysfunction in post-acute infection syndrome patients.

Up to 200 participants will be enrolled in the study, and initial data from this longitudinal assessment are expected in Q2 2026.

Price Action: VRAX stock is trading flat at $1.16 at the last check Monday.

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