Vaxart ((VXRT)) has held its Q1 earnings call. Read on for the main highlights of the call.
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Vaxart’s recent earnings call presented a mixed sentiment, highlighting both significant achievements and notable challenges. The company reported substantial revenue growth and advancements in clinical trials, yet faced hurdles such as workforce reductions, a CFO resignation, and the looming risk of NASDAQ delisting. This balanced sentiment reflects Vaxart’s current position in the biotech landscape.
Revenue Increase
Vaxart reported a remarkable increase in revenue for the first quarter of 2025, reaching $20.9 million compared to $2.2 million in the same period of 2024. This substantial growth is primarily attributed to the BARDA contract, underscoring the company’s successful efforts in securing significant government support.
Lifting of Stop Work Order
The company announced the lifting of the stop work order on the 10,000 participant portion of the COVID-19 Phase 2b clinical trial. This development allows the trial to proceed, marking a critical step forward in Vaxart’s COVID-19 vaccine efforts.
Norovirus Vaccine Trial Progress
Vaxart completed enrollment for the Phase 1 trial of its second-generation norovirus vaccine candidate. The company anticipates top-line data from this trial by mid-2025, signaling progress in its vaccine development pipeline.
Positive Preclinical Results in Avian Flu Program
The company’s avian flu vaccine candidate demonstrated promising results in preclinical studies, showing 100% protection against death in a ferret model. This positive outcome highlights the potential efficacy of Vaxart’s vaccine candidates.
Workforce Reductions
In an effort to reduce operating costs, Vaxart implemented additional workforce reductions. These measures are part of the company’s strategy to rationalize costs amid ongoing financial challenges.
CFO Resignation
Phil Lee, Vaxart’s CFO, submitted his resignation for personal reasons. He will remain as a non-executive employee for a few weeks to ensure a smooth transition, marking a significant change in the company’s leadership.
Risk of NASDAQ Delisting
Vaxart faces the risk of being delisted from NASDAQ due to not meeting the $1 minimum bid price requirement. The company is considering a reverse stock split as a potential solution to maintain its listing status.
Forward-Looking Guidance
Looking ahead, Vaxart is actively screening patients for its Project NextGen Phase 2b COVID-19 vaccine trial, with dosing expected to begin in the second quarter of 2025. Supported by a BARDA contract worth up to $460.7 million, this trial is a key focus for the company. Additionally, Vaxart completed enrollment in a Phase 1 trial for its norovirus vaccine, with results anticipated mid-2025. Financially, the company ended the quarter with $41.9 million in cash and expects its cash runway to extend into Q1 2026. Vaxart is exploring strategic partnerships and non-dilutive funding to strengthen its financial position.
In conclusion, Vaxart’s earnings call highlighted a balanced sentiment of achievements and challenges. While the company made significant strides in revenue growth and clinical trials, it also faces critical issues such as workforce reductions and potential NASDAQ delisting. The forward-looking guidance suggests a focus on strategic trials and financial stability, positioning Vaxart for future opportunities in the biotech sector.