Appili receives $3.6 million NIAID contract for fungal vaccine development

HALIFAX - Appili Therapeutics Inc. (TSX:APLI; OTCPink:APLIF), a micro-cap biotech company with a current market value of $1.31 million, and partner Vitalex Biosciences have secured a contract worth up to $40 million from the National Institute of Allergy and Infectious Diseases (NIAID) to develop a vaccine against invasive fungal infections, the company announced Wednesday. According to InvestingPro data, the company’s stock has shown high volatility, with a -25% return over the past week.

The five-year contract includes an initial 22-month base period valued at $3.6 million, with twelve additional option periods that could bring the total funding to approximately $40 million - a significant opportunity for a company that generated just $0.07 million in revenue over the last twelve months. The funds will support the development of VXV-01, a dual-antigen vaccine targeting pathogens including Candida albicans and Candida auris.

Under the agreement, Appili will manage manufacturing, nonclinical studies, and regulatory activities through Investigational New Drug submission and Phase 1 clinical trials.

"VXV-01 has the potential to significantly reduce serious invasive infections caused by Candida albicans, Candida auris, and other related healthcare-associated infections," said Don Cilla, President and Chief Executive Officer of Appili, according to the press release.

Invasive fungal infections affect nearly 6.5 million people annually worldwide and are associated with approximately 3.8 million deaths. Currently, no fungal vaccines are approved for human use.

The vaccine is designed to target antigens present on the surface of pathogenic fungi, potentially providing immunity against these pathogens. Vitalex is the current owner of VXV-01, and the companies expect to enter into a development agreement as the program advances.

Appili has also submitted four additional funding proposals to the U.S. government with a combined potential value of up to $97 million to support development of other infectious disease products.

The information in this article is based on a company press release statement. While currently unprofitable, InvestingPro analysts expect Appili to achieve profitability this year, with multiple additional financial insights available to subscribers. Get access to 10+ more exclusive ProTips and comprehensive financial metrics by subscribing to InvestingPro.

In other recent news, Appili Therapeutics Inc. announced that shareholders approved all proposed resolutions during the company’s annual and special meeting. This included the election of six directors to the board, with each director receiving over 99% approval from voting shareholders. The directors elected are Don Cilla, Brian Bloom, Theresa Matkovits, Juergen Froehlich, Armand Balboni, and Prakash Gowd. These developments mark a significant step for Appili Therapeutics as they continue to shape their board with experienced individuals. The high approval rate reflects strong shareholder confidence in the company’s leadership choices. This news comes as part of Appili Therapeutics’ ongoing efforts to engage with shareholders and ensure effective governance.

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