Vaxart Announces Fourth Quarter and Full Year 2019 Financial Results and Provides Corporate Update
Company Focuses on COVID-19 Program, the First Oral Coronavirus Vaccine
Raised total of
“SARS CoV-2, the coronavirus that causes COVID-19, is primarily transmitted by viral particles that enter through the nose, mouth or eyes, and cause a respiratory infection,” said
“This outbreak is a call to duty for all of us here at
Other Corporate Updates:
- The Universal Influenza vaccine collaboration with Janssen is proceeding as planned and remains on schedule to provide results in 1H 2020, barring delays due to the Coronavirus outbreak.
- Published results from the H1 seasonal influenza oral tablet vaccine challenge study in the Lancet Infectious Diseases. The study demonstrated that Vaxart’s oral tablet influenza vaccine generated a 39 percent reduction in clinical disease relative to placebo, compared to a 27 percent reduction by Fluzone. It also reduced infection rates by 47 percent, compared to 43 percent by Fluzone.
- Restructured the manufacturing and process development departments resulting in, among other things, a reduction in headcount.
- Raised approximately
$9.8 millionin net proceeds from the exercise of Warrants during the first quarter of 2020 to date.
- Completed a registered direct offering in
March 2020, through which Vaxartraised aggregate gross proceeds of $10.0 millionfrom the sale of 4.0 Million shares of common stock and warrants to purchase 2.0 million shares of common stock that are exercisable for $2.50per share.
- Regained compliance with the continuing listing standards of The Nasdaq Capital Market.
Financial Results for the Three Months Ended
Vaxartreported a net loss of $6.4 millionfor the fourth quarter of 2019 compared to $4.9 millionfor the fourth quarter of 2018. The principal reason for the increase was a charge of $4.9 millionfor restructuring, partially offset by an increase in revenue and a reduction in research and development expenditure.
- Revenue for the quarter was
$3.9 millioncompared to $1.8 millionin the fourth quarter of 2018. The increase was mostly due to non-cash royalty revenue related to the sale of future royalties.
- For the quarter ended
December 31, 2019, royalty revenue from Inavir increased by $2.2 million, or 148%, compared to the quarter ended December 31, 2018.
Financial Results for the Full Year 2019
Vaxartreported a net loss of $18.6 millionfor 2019 compared to $18.3 millionfor 2018. The principal reason for the increase was the absence of a bargain purchase gain of $6.8 million, partially offset by an increase in revenue of $5.7 million.
- Revenue for the year was
$9.9 millioncompared to $4.2 millionin 2018. The increase was mostly due to $3.5 millionof 2018 revenue having been recorded in the pre-Merger period of January 1-February 13, 2018and increased royalty revenue from Inavir in the fourth quarter of 2019.
- Research and development expenses were
$14.5 millionfor 2019 compared to $17.3 millionfor 2018. The decrease was mainly due to the absence of clinical trials costs for teslexivir and HHS BARDA contract costs and a reduction in pre-clinical research costs, partially offset by higher manufacturing and clinical trial costs incurred in Vaxart’s norovirus program.
- General and administrative expenses were
$6.2 millionfor the year compared to $6.7 millionfor 2018. The decrease was mainly due to reductions in legal fees and other costs associated with becoming a public company.
- Other operating expenses were
$4.9 millionfor 2019 due to restructuring costs related to the suspension of Vaxart’s manufacturing operations, compared to $2.0 millionfor 2018, which related to the impairment of intangible assets related to teslexivir and the sublease of Vaxart’s premises in Georgia. Vaxartended the year with cash and cash equivalents of $13.5 millioncompared to $11.5 millionat December 31, 2018. The increase was primarily due to funds raised via issuances of equity totaling $19.87 millionduring 2019, partially offset by cash used in operations totaling $13.1 millionand the repayment of debt for $3.8 million.
Note Regarding Forward-Looking Statements
This press release contains forward-looking statements that involve substantial risks and uncertainties. All statements, other than statements of historical facts, included in this press release regarding Vaxart’s strategy, prospects, plans and objectives, results from preclinical and clinical trials, commercialization agreements and licenses, beliefs and expectations of management are forward-looking statements. These forward-looking statements may be accompanied by such words as “believe,” “could,” “potential,” “will” and other words and terms of similar meaning. Examples of such statements include, but are not limited to, statements relating to the Vaxart’s ability to develop and commercialize its product candidates and clinical results and trial data (including plans with respect to the proposed coronavirus vaccine program); Vaxart’s intention to continue its efforts to advance its oral tablet seasonal flu vaccine; and Vaxart’s expectations with respect to the important advantages it believes its oral vaccine platform can offer over injectable alternatives, particularly for mucosal pathogens such as norovirus, flu and RSV, as well as coronaviruses such as SARS, MERS and the virus that recently emerged in
650 550 3500
Condensed Consolidated Balance Sheets
|Cash and cash equivalents||$||13,526||$||11,506|
|Prepaid and other assets||594||1,446|
|Property and equipment, net||210||1,066|
|Right-of-use assets, net||1,990||—|
|Intangible assets, net||17,093||19,413|
|Liabilities and stockholders’ equity|
|Accrued and other liabilities||4,583||1,675|
|Liability related to sale of future royalties||16,332||17,741|
|Secured promissory note||—||3,611|
|Operating lease liabilities||2,313||—|
|Total liabilities and stockholders’ equity||$||37,032||$||35,227|
(1) Derived from the audited consolidated financial statements of
Condensed Consolidated Statements of Operations
|Three Months Ended
|(in thousands, except share and per share amounts)|
|Research and development||3,291||4,474||14,540||17,275|
|General and administrative||1,331||1,226||6,187||6,681|
|Restructuring and impairment charges||4,920||253||4,920||1,959|
|Total operating expenses||9,542||5,953||25,647||25,915|
|Loss from operations||(5,626||)||(4,186||)||(15,785||)||(21,756||)|
|Bargain purchase gain||—||100||—||6,760|
|Other income and expenses, net||(587||)||(736||)||(2,370||)||(2,902||)|
|Provision for income taxes||(196||)||(80||)||(490||)||(109||)|
|Net loss attributable to common stockholders||$||(6,409||)||$||(4,902||)||$||(18,645||)||$||(18,346||)|
|Net loss per share, basic and diluted||$||(0.13||)||$||(0.69||)||$||(0.86||)||$||(2.90||)|
|Shares used in computing net loss per share, basic and diluted||47,744,463||7,141,189||21,569,523||6,316,065|
(1) Derived from the audited consolidated financial statements of
Source: Vaxart, Inc.