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SOUTH SAN FRANCISCO, Calif. - Vaxart, Inc. (Nasdaq: VXRT), a clinical-stage biotechnology company whose stock has declined nearly 60% over the past year, has announced a proposed reverse stock split aimed at maintaining its listing on the Nasdaq stock exchange. According to InvestingPro data, the company is currently trading at $0.42, with analysts maintaining a strong buy recommendation despite recent challenges. The company has urged its stockholders to vote in favor of Proposal #2 at the upcoming Annual Meeting to avoid delisting.
The reverse stock split would not exceed a ratio higher than 1-for-20, with the exact ratio to be approved by stockholders at a future special meeting to be scheduled shortly after the Annual Meeting. Vaxart’s board of directors has also approved a proportional reduction in the authorized number of shares of common stock in line with the reverse stock split ratio, conditional on the passage of Proposal #2. InvestingPro analysis indicates the company holds more cash than debt on its balance sheet, though it’s currently burning through cash at a concerning rate.
Steven Lo, President & CEO of Vaxart, stated that the reverse stock split is a response to stockholder feedback and emphasized its importance for maintaining liquidity and access to institutional investors. He highlighted that a Nasdaq listing is crucial for a stable market presence and the company’s ongoing development of oral pill vaccine technology.
Stockholders who have previously voted against the proposal have the opportunity to change their vote in favor of Proposal #2 by the deadline of Tuesday, May 20, 2025, at 11:59 p.m. Eastern Time. The company’s financial health score from InvestingPro stands at "FAIR," with particular strengths in growth potential despite current profitability challenges.
Vaxart’s proprietary vaccine delivery platform focuses on developing oral recombinant vaccines that can be administered in pill form, potentially simplifying storage and distribution while eliminating needle-stick injuries. The company’s vaccine development programs include protection against coronavirus, norovirus, influenza, and a therapeutic vaccine for HPV. With revenue growth of over 430% in the last twelve months, the company shows promising commercial potential despite current profitability challenges.
The press release also contains forward-looking statements regarding the company’s operations and financial performance, as well as the planned special meeting of stockholders. These statements are based on current expectations and involve risks and uncertainties that could affect the company’s business operations and financial performance.
The information in this article is based on a press release statement from Vaxart, Inc.
In other recent news, Vaxart, Inc. has received authorization from the Biomedical Advanced Research and Development Authority (BARDA) to proceed with a significant segment of its Phase 2b clinical trial for an oral COVID-19 vaccine, involving 10,000 participants. This trial aims to evaluate the vaccine’s efficacy, safety, and immune response compared to an existing mRNA COVID-19 vaccine. Additionally, Vaxart has completed enrollment for its Phase 1 trial of second-generation oral norovirus vaccine candidates, with topline data expected in mid-2025. The company also announced the appointment of Jeroen Grasman as its new Chief Financial Officer, succeeding Phillip Lee. Vaxart is seeking stockholder approval for a reverse stock split to maintain its Nasdaq listing, supported by proxy advisory firms Institutional Shareholder Services and Glass Lewis. Furthermore, the company has resumed BARDA-funded trial activities after lifting a previous stop work order, allowing for the continuation of trial preparations. These developments are part of Vaxart’s broader strategy, which includes strategic cost reductions to extend its cash runway into 2026.
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