Vaxart (NASDAQ:VXRT), Inc., a biotechnology company focused on developing vaccines, announced today that it has terminated its Controlled Equity OfferingSM Sales Agreement with Cantor Fitzgerald & Co. and B. Riley Securities, Inc. The termination, effective October 18, 2024, brings an end to the company's ability to sell shares under the agreement.
The South San Francisco-based company, which operates under the ticker NASDAQ:VXRT, initially entered into the sales agreement on September 15, 2021. This arrangement allowed Vaxart to sell shares of its common stock in what is known as an "at the market offering." Since the inception of the agreement and up until today, Vaxart has sold approximately 17.5 million shares, resulting in aggregate gross proceeds of roughly $28.6 million.
According to the company's statement, the termination of the agreement will not result in any penalties for Vaxart. Furthermore, the company has indicated that it does not plan to offer or sell additional shares of common stock under the sales agreement before its termination date.
The decision to halt the sales comes at a time when Vaxart has been working on various vaccine candidates, including efforts to combat viral infections. The company's move to cease additional stock sales under the agreement could reflect a strategic shift or a new phase in its financing activities.
In other recent news, Vaxart, Inc. has reported encouraging results from a preclinical study of its oral HPV vaccine candidates, suggesting a potential non-invasive treatment for HPV-related cervical dysplasia. The study showed that the vaccines reduced tumor size and improved survival rates in mice. On the financial front, Vaxart has released its Q2 2024 financial results, revealing a significant $453 million contract from the Biomedical Advanced Research and Development Authority (BARDA) for its COVID-19 vaccine initiative. The company's revenue for the quarter was $6.4 million, largely driven by the BARDA contract, and concluded with $62.6 million in cash reserves.
Vaxart also received an additional $64.7 million from BARDA post-quarter, securing a cash runway into 2026. In terms of product development, the company reported positive results from a Phase 1 trial for its norovirus vaccine program and plans to launch a large-scale Phase 2b COVID-19 trial later in the year. These recent developments highlight Vaxart's commitment to advancing its vaccine candidates, backed by substantial funding from BARDA.
InvestingPro Insights
Vaxart's decision to terminate its Controlled Equity Offering Sales Agreement comes at a time when the company's financial metrics paint a complex picture. According to InvestingPro data, Vaxart's market capitalization stands at $179.27 million, reflecting its current valuation in the biotech sector. The company has demonstrated impressive revenue growth, with a 577.76% increase over the last twelve months as of Q2 2024, and a 371.35% quarterly growth in Q2 2024. This substantial growth aligns with the company's development of vaccine candidates and could explain why Vaxart is adjusting its financing strategies.
However, InvestingPro Tips highlight some challenges. Vaxart is "quickly burning through cash" and "suffers from weak gross profit margins," which may have influenced the decision to end the stock sale agreement. The company's gross profit margin stands at -375.3%, indicating significant costs associated with its research and development efforts.
On a positive note, InvestingPro Tips also reveal that Vaxart "holds more cash than debt on its balance sheet" and "liquid assets exceed short term obligations," suggesting a degree of financial stability despite the cash burn. This could provide some reassurance to investors concerned about the company's financial position following the termination of the sales agreement.
For those interested in a deeper analysis, InvestingPro offers 5 additional tips that could provide further insights into Vaxart's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.