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SOUTH SAN FRANCISCO - Biotechnology firm Vaxart, Inc. (NASDAQ:VXRT), currently trading at $0.45 with a market capitalization of $102.5 million, has urged its stockholders to vote in favor of a reverse stock split proposal at its upcoming annual meeting scheduled for May 21, 2025. The initiative is aimed at maintaining the company’s listing on the Nasdaq exchange, as it currently risks falling below the minimum bid price requirement. According to InvestingPro analysis, the stock appears to be trading near its Fair Value, with significant price volatility observed in recent months.
The company’s recent progress includes lifting a government stop work order on April 24, 2025, which allows the continuation of a clinical trial for a COVID-19 vaccine candidate. This development is expected to enable Vaxart to pursue non-dilutive government funding further. Vaxart is also advancing its norovirus program, having completed enrollment for a trial with topline data expected in mid-2025.
In response to the current economic challenges, Vaxart has implemented strategic cost reductions, including workforce cuts, to extend its cash runway into 2026. These measures are part of a broader strategy to balance cost savings with investment in research and development. InvestingPro data reveals that while the company holds more cash than debt on its balance sheet, it’s quickly burning through cash reserves, with a negative EBITDA of $57.4 million in the last twelve months. Get access to 10+ additional ProTips and comprehensive financial analysis with InvestingPro.
The reverse stock split proposal has received support from leading independent proxy advisory firms Institutional Shareholder Services and Glass Lewis. The board of directors intends to effect the reverse stock split only if necessary to comply with Nasdaq’s listing requirements and will choose a ratio just sufficient to address the exchange’s minimum bid price condition.
Vaxart’s President and CEO, Steven Lo, emphasized the importance of the reverse stock split for avoiding delisting, which could negatively impact liquidity and the value of the company’s securities. Vaxart will also host a Q1 2025 earnings call on May 13, 2025, and present at the Citizens Life Sciences Conference on May 7, 2025.
Vaxart specializes in developing oral recombinant vaccines and is working on vaccine candidates for various diseases, including coronavirus, norovirus, influenza, and HPV. The company’s proprietary delivery platform enables the administration of vaccines in pill form. Despite reporting revenue growth of 289% in the last twelve months, analysts anticipate sales decline in the current year. Discover detailed financial metrics and expert analysis in the comprehensive Pro Research Report, available exclusively on InvestingPro, along with reports for 1,400+ other US stocks.
This article is based on a press release statement from Vaxart, Inc.
In other recent news, Vaxart Inc. reported its fourth quarter 2024 earnings, revealing a notable disparity between earnings per share (EPS) and revenue. The company missed EPS expectations with a reported -$0.33, falling short of the forecasted -$0.10. However, revenue exceeded projections, reaching $28.7 million against an expected $20.77 million. Vaxart has also completed enrollment for its Phase 1 trial of second-generation oral norovirus vaccine candidates, marking progress in its vaccine development efforts. Additionally, the company has resumed a government-funded clinical trial after receiving authorization to proceed, lifting a previous stop work order from Advanced Technology International concerning a project agreement with BARDA. This authorization allows Vaxart to prepare for a larger trial involving 10,000 participants. Furthermore, the company is exploring strategic partnerships and non-dilutive funding options to extend its cash runway into the fourth quarter of 2025. Vaxart continues to advance its norovirus and other vaccine programs, with plans to release top-line data from its norovirus Phase 1 trial by mid-2025.
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