Vaxart resumes BARDA-funded trial activities

Published 28/04/2025, 13:08
Vaxart resumes BARDA-funded trial activities

Vaxart, Inc. (NASDAQ:VXRT), a biotechnology company specializing in the development of oral recombinant vaccines with a market capitalization of $91 million, announced on Monday that it has received authorization to proceed with a government-funded clinical trial. According to InvestingPro data, the company’s stock has shown significant momentum with a 26% gain over the past week. The notification, dated April 24, 2025, lifts a previous stop work order from Advanced Technology International (ATI) regarding a project agreement with the Biomedical Advanced Research and Development Authority (BARDA).

The company, which had been directed to halt all work except for certain follow-up activities for a 400-person cohort, can now resume incurring costs and preparing for a 10,000 participant trial. While Vaxart maintains more cash than debt on its balance sheet, InvestingPro analysis indicates the company is quickly burning through cash with a concerning current ratio of 0.75. Vaxart’s immediate plans include reactivating field sites and screening participants for enrollment. Further discussions with BARDA will address costs, timelines, and regulatory pathway agreements.

This development follows a period of uncertainty after Vaxart received stop work orders on February 21, 2025, affecting all efforts under the project agreement initiated on June 13, 2024. The current lift notice signals a positive turn, allowing the company to move forward with its trial operations.

Vaxart’s statements regarding the resumption of the trial and future discussions with BARDA are forward-looking and subject to risks and uncertainties. These include the company’s ability to meet the project agreement’s milestones and deliverables, as well as the potential for successful trial outcomes. The company cautions that actual results may differ materially from expectations due to various factors.

Investors are advised that Vaxart has a history of operating losses and faces risks detailed in its most recent Annual Report on Form 10-K and other filings with the U.S. Securities and Exchange Commission. Financial metrics from InvestingPro reveal concerning fundamentals, including a gross profit margin of -159% and high volatility with a beta of 1.57. For deeper insights into Vaxart’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers, along with 12 additional key ProTips about the company’s performance. Vaxart has stated it will provide further updates on the trial as appropriate and has no obligation to update or revise any forward-looking statements unless required by law.

This news is based on a press release statement and reflects the latest available information from Vaxart’s filings with the Securities and Exchange Commission.

In other recent news, Vaxart Inc. reported its fourth quarter 2024 earnings, showing a notable performance in revenue but falling short in earnings per share (EPS). The company recorded a revenue of $28.7 million, surpassing the expected $20.77 million, driven by strong sales, particularly from government contracts. However, the EPS was -$0.33, significantly missing the forecasted -$0.10. Despite this earnings miss, the company maintains a cash runway into the fourth quarter of 2025, providing some financial stability for its ongoing projects.

Vaxart continues to focus on advancing its norovirus and other vaccine programs. The company anticipates releasing top-line data from its norovirus Phase 1 trial by mid-2025. Meanwhile, the U.S. Department of Health and Human Services issued a stop work order related to a BARDA-funded COVID-19 study, which could impact future program progress.

Analysts have not recently upgraded or downgraded the stock, but the company’s strategic direction and financial management remain under scrutiny due to the EPS miss. Vaxart is exploring various strategies to extend its cash runway, including potential partnerships and non-dilutive funding.

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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