SOUTH SAN FRANCISCO, Calif. - Vaxart, Inc. (NASDAQ:VXRT), a biotechnology company specializing in the development of oral recombinant vaccines, announced this Monday that its financial position has been significantly bolstered following a recent $40 million offering and a substantial award from the U.S. government's Biomedical Advanced Research and Development Authority (BARDA). The combined inflow of funds is expected to extend the company's cash runway into 2026, supporting its ongoing clinical and regulatory activities.
The company received one of the largest Project NextGen awards from BARDA, amounting to up to $453 million. This funding will finance a Phase 2b comparative study of Vaxart's oral COVID-19 vaccine candidate, set to begin enrollment by summer 2024. The study will compare the oral vaccine's efficacy against an FDA-approved mRNA vaccine, with interim results potentially available in early 2025.
Vaxart's oral vaccine platform is designed to offer a more convenient alternative to injectable vaccines, aiming to induce both systemic and mucosal immune responses. The company asserts that its vaccine candidate has demonstrated a benign safety profile in clinical trials and emphasizes the importance of mucosal immunity in combating respiratory viruses like SARS-CoV-2.
In addition to the COVID-19 vaccine efforts, Vaxart is progressing with its norovirus vaccine program. Following positive Phase 1 trial results in lactating mothers, supported by the Bill & Melinda Gates Foundation, the company anticipates FDA feedback on potential correlates of protection for norovirus by mid-2024, which will guide future clinical development.
Vaxart is also advancing earlier-stage vaccine programs targeting seasonal influenza, human papillomavirus (HPV), and avian flu, with updates on these programs to be provided as they evolve.
The information in this article is based on a press release statement from Vaxart, Inc. and reflects the company's current expectations and projections about the progress of its vaccine programs and the usage of financial resources. It is important to note that forward-looking statements are predictions, subject to risks and uncertainties, and actual results may differ materially.
In other recent news, Vaxart Inc. has made significant strides in its vaccine development programs. The biotech firm has been granted up to $453 million by the Biomedical Advanced Research and Development Authority (BARDA) for a Phase IIb study involving its oral COVID-19 vaccine candidate. This BARDA-funded project NextGen award is part of a broader initiative by the U.S. Department of Health and Human Services to support mid-stage trials for innovative COVID-19 vaccines.
B.Riley has subsequently raised the price target for Vaxart shares to $2.50, maintaining a Buy rating on the stock. This adjustment follows the company's announcement of the significant award. The first tranche of $65.7 million will be used to further start-up activities, including contracts with clinical research organizations and vaccine procurement.
In other developments, Vaxart has reported Q1 2024 revenue of $2.2 million, with cash and investments amounting to $36.7 million. The company has also expanded its authorized shares from 250 million to 350 million and made amendments to its equity incentive and employee stock purchase plans.
Vaxart's stockholders ratified the appointment of WithumSmith+Brown, PC as the company's independent registered public accounting firm for the year ending December 31, 2024. These recent developments highlight Vaxart's ongoing efforts to advance its vaccine candidates and potentially facilitate future growth initiatives.
InvestingPro Insights
As Vaxart, Inc. (NASDAQ:VXRT) continues to advance its vaccine programs with the recent financial boost from BARDA and a successful offering, the company's stock performance and financial health are of keen interest to investors. According to InvestingPro data, Vaxart holds a market capitalization of approximately $92.7 million, indicating the scale of the company within the biotech industry.
Investors following Vaxart's journey should note that the company's revenue has seen a staggering increase over the last twelve months as of Q1 2024, with a growth rate of 1174.75%. This significant uptick in revenue is a testament to the company's recent achievements and potential for future growth. However, despite this impressive revenue growth, Vaxart's gross profit margin stands at -660.08%, underscoring the challenges the company faces in terms of cost management and profitability.
Furthermore, the company's stock has experienced substantial volatility, with a price total return of -40.07% over the last year. This performance aligns with one of the InvestingPro Tips, which points out that the stock has taken a significant hit over the last week, month, and three months. The company's current price is also trading near its 52-week low, which could be of interest to investors looking for potential entry points.
In light of these metrics, two InvestingPro Tips are particularly relevant: Vaxart is quickly burning through cash, and analysts do not anticipate the company will be profitable this year. These insights could be crucial for investors considering the long-term viability of Vaxart's financial strategy and the risks involved.
For a deeper analysis and additional insights, investors can visit https://www.investing.com/pro/VXRT, where they can find a total of 12 InvestingPro Tips related to Vaxart. Users can utilize the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, gaining access to valuable investment guidance and in-depth company metrics.
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