Pluri Inc. subsidiary loses $4.2 million NIAID contract

Published 17/04/2025, 21:06
Pluri Inc. subsidiary loses $4.2 million NIAID contract

Pluri Inc. (NASDAQ:PLUR), a biotechnology company specializing in biological products with a market capitalization of $31.32 million, has experienced a setback as its subsidiary, Pluri Biotech Ltd., received a contract termination notice from the U.S. National Institute of Allergy and Infectious Diseases (NIAID). The termination, effective Tuesday, was for the Government’s convenience, according to the formal notice received.

The contract, valued at $4.2 million and originally announced on July 11, 2023, was to fund the development of Pluri’s PLX-R18 cell therapy, a potential treatment for Hematopoietic Acute Radiation Syndrome (H-ARS). The project involved collaboration with the U.S. Department of Defense Armed Forces Radiobiology Research Institute and the Uniformed Services University of Health Sciences, under the umbrella of the National Institutes of Health. InvestingPro data shows the company has been quickly burning through cash, with an EBITDA of -$21.47 million in the last twelve months.

The cessation of this contract may be indicative of wider federal budgetary and administrative changes impacting various health-related agencies, including the National Institutes of Health. Despite these challenges, Pluri Inc. maintains strong liquidity with a current ratio of 5.04, indicating sufficient assets to meet short-term obligations. The company is closely observing these shifts to determine their potential effects on ongoing projects. InvestingPro subscribers can access 8 additional key insights about Pluri’s financial health and growth prospects.

This development comes as a significant event for Pluri Inc., headquartered in Haifa, Israel, and incorporated in Nevada. The company, which has shown impressive revenue growth of 89.92% over the last twelve months, has its fiscal year ending on June 30 and is listed on the Nasdaq Capital Market under the ticker symbol PLUR. Based on InvestingPro Fair Value analysis, the stock currently appears to be overvalued.

The information in this article is based on a press release statement.

In other recent news, Pluri Inc. has secured new U.S. and Israeli patents for its immune cell expansion technologies, which are aimed at treating solid cancers. These patents cover advancements in the expansion of Mucosal-Associated Invariant T (MAIT) cells, potentially offering a scalable solution for cancer immunotherapy. Additionally, Pluri Inc. has announced an exclusive partnership with Ukrainian biobank Hemafund to stockpile and advance its PLX-R18 cell therapy for Hematopoietic Acute Radiation Syndrome (H-ARS) in Ukraine. This collaboration is set to last for an initial three years, with the potential for extension, and aims to create a stockpile of 12,000 doses.

In another development, Pluri Inc. has been granted an extension by Nasdaq to meet its continued listing requirements, specifically the minimum stockholders’ equity of $2.5 million. The company has until May 24, 2025, to comply, after which it may face delisting if it fails to meet the requirements. Furthermore, Pluri Inc. has announced its 2025 Annual Meeting of Shareholders will take place on May 14, 2025, at its headquarters in Haifa, Israel. This meeting is scheduled more than 30 days later than the previous year’s meeting.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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