Vaxart, Inc. (NASDAQ:VXRT), a biotechnology company with a market capitalization of $138 million specializing in the development of oral recombinant vaccines, has entered into an amendment to increase funding for a Phase 2b trial of its oral COVID-19 vaccine candidate.
According to InvestingPro analysis, the company's stock appears undervalued based on its Fair Value metrics, despite seeing a modest 6.15% gain year-to-date. The modification, signed on Monday, boosts the total potential funding to approximately $460.7 million, a $4.6 million increase, with immediate allotment for the trial rising by about $37.7 million.
The additional funds will enable Vaxart to acquire and distribute the mRNA vaccine comparator, as well as other clinical materials, to trial sites. This support also extends to clinical trial site readiness for the main efficacy and safety portion of the study.
InvestingPro data reveals that while the company holds more cash than debt on its balance sheet, it is quickly burning through its cash reserves - two of eight key insights available to Pro subscribers. The mRNA comparator is an FDA-approved vaccine that will serve as a benchmark in the comparative study.
This financial enhancement is part of Modification No. 4 to the original Project Agreement with Advanced Technology International, the management firm for the Rapid Response Partnership Vehicle funded by the Biomedical Advanced Research and Development Authority (BARDA) of the U.S. Department of Health and Human Services.
Vaxart's oral vaccine candidate, known as the XBB COVID-19 vaccine, is being evaluated against an established mRNA vaccine to determine its effectiveness. The increase in funding reflects confidence in the potential of Vaxart's oral vaccine approach and the importance of continuing research in the fight against COVID-19.
The specifics of this modification will be detailed in an exhibit to be included in Vaxart’s next periodic report. The company has emphasized that the forward-looking statements in the report are based on current expectations and involve risks and uncertainties that could cause actual results to differ materially.
Investors are advised to consider the risks associated with the company's ability to meet the Project Agreement milestones and the Trial's success. With an overall Financial Health score of "FAIR" according to InvestingPro, and analysts anticipating sales growth but no profitability this year, careful consideration of the investment thesis is warranted.
Vaxart has stated that it will not undertake any obligation to publicly update or revise any forward-looking statements, except as required by law. The information reported is based on a press release statement. For a comprehensive analysis of Vaxart's financial health and future prospects, investors can access the detailed Pro Research Report, available exclusively to InvestingPro subscribers.
In other recent news, Vaxart Inc., a biotechnology firm, reported significant progress in its vaccine programs and financial growth during its latest earnings call. The company's revenue has increased to $4.9 million for the third quarter of 2024, a leap from the $2.1 million reported in the same period the previous year. The firm also maintains a robust cash position that is expected to sustain its operations until 2026.
Vaxart's ongoing Phase 2b study of their oral COVID-19 vaccine is progressing well, with initial dosing expected to be completed soon. Notably, the company's Norovirus and HPV vaccine programs are also advancing, with promising developments reported.
Particularly, the Norovirus vaccine program is preparing for a Phase 2b study following constructive feedback from the FDA, and the HPV vaccine shows potential for a non-invasive approach to prevent cervical cancer.
According to the company's outlook, Vaxart plans an interim analysis of the COVID-19 vaccine study after 255 cases and a 12-month comprehensive data evaluation. The firm is also preparing for an end of Phase 2 meeting with the FDA for the Norovirus vaccine program. These are among the recent developments that highlight Vaxart's commitment to innovating oral vaccines to address current and emerging infectious disease threats.
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