Vaxart Announces First Quarter 2018 Financial Results and Corporate Update
“Since the start of this year, we have made considerable progress
advancing our business objectives and progressing our oral vaccine
candidates as well as teslexivir® for the treatment of
condyloma caused by HPV,” said
First Quarter 2018 and Recent Highlights:
February 13, 2018, Vaxartclosed its merger with publicly traded Aviragen Therapeutics, Inc.The combined public entity is now named Vaxart, Inc., and is traded on the Nasdaq Capital marketunder the ticker symbol “VXRT.” The operations of Aviragen Therapeutics are included in the financial statements from the date of the merger forward.
April 20, 2018, Vaxartannounced it received notification from Daiichi Sankyo Co., Ltd, that sales of Inavir®, a single dose product licensed in Japanto prevent or treat influenza infection, exceeded ¥20 billion in the royalty year ending March 31, 2018, triggering a $5 millionmilestone payment to Vaxartthat will be paid in the second quarter of 2018.
April 19, 2018, Vaxartannounced the appointment of Brant Biehnas Senior Vice President, Commercial Operations. Mr. Biehn brings over 27 years of commercial planning, market development and sales experience in the pharmaceutical industry.
May 1, 2018, Vaxartannounced the appointment of David Taylor, M.D., as Chief Medical Officer. Dr. Taylor brings over 35 years of experience in medical research, drug and vaccine development and clinical trial management for government organizations, non-profits, academia and both private and public healthcare companies.
First Quarter 2018 Financial Results:
Vaxartended the quarter with cash, cash equivalents and short-term investments of $17.5 millioncompared to $3.0 millionat December 31, 2017. The increase was due to cash received from Aviragen upon consummation of the reverse merger on February 13, 2018, offset by cash used in operations.
Revenue for the quarter was
$1.5 millioncompared to $2.3 millionin the first quarter of 2017. Revenue from the contract with HHS BARDA decreased $1.7 millionas activities are winding down. Royalty revenue from sales of Relenza® and Inavir®, which were acquired in the merger, amounted to $0.9 millionsince the date of the merger. Most of the quarter’s royalty revenue, including the $5 millionInavir® milestone, was earned prior to the merger and is reflected as $11.1 millionin accounts receivable as of March 31, 2018.
Research and development expenses were
$3.4 millionfor the quarter compared to $3.9 millionfor the first quarter of 2017. The decrease was primarily due to reduced activity under Vaxart’s contract with HHS BARDA, offset by clinical expenses relating to Aviragen’s operations since the date of the merger.
General and administrative expenses were
$2.0 millionfor the first quarter of 2018, compared to $0.7 millionfor the first quarter of 2017. The increase was primarily due to the additional costs of being a public company, merger-related costs and the overlap of personnel during the transition of operations following the merger.
- The excess of the estimated fair value of net assets acquired over the consideration paid for Aviragen resulted in a bargain purchase gain, which is included in the statement of operations. This is a non-cash item.
Note Regarding Forward-Looking Statements
This press release contains forward-looking statements that involve
substantial risks and uncertainties. All statements, other than
statements of historical facts, included in this press release regarding
our strategy, prospects, plans and objectives, results from preclinical
and clinical trials, commercialization agreements and licenses, beliefs
and expectations of management are forward-looking statements. These
forward-looking statements may be accompanied by such words as
“believe,” “could,” “potential”, “will” and other words and terms of
similar meaning. Examples of such statements include, but are not
limited to, statements relating to the Vaxart’s ability to develop and
commercialize its product candidates, clinical results and trial data,
Vaxart’s ability to obtain and maintain regulatory approval of its
product candidates and Vaxart’s reliance on third party funding,
royalties and grants.
Condensed Consolidated Balance Sheets
|Cash and cash equivalents||$||17,495||$||1,571|
|Prepaid and other current assets||1,052||137|
|Property and equipment, net||1,014||730|
|Intangible assets, net||23,627||40|
|Liabilities and stockholders’ equity (deficit)|
|Accrued and other current liabilities||2,353||1,605|
|Liability related to sale of future royalties||16,598||—|
|Secured promissory note||4,736||4,968|
|Convertible promissory notes, related party||—||35,282|
|Stockholders’ equity (deficit)||31,106||(38,722||)|
|Total liabilities and stockholders’ equity||$||56,537||$||4,523|
|(1)||Derived from the audited financial statements of Vaxart Biosciences, Inc. for the year ended December 31, 2017, included on the Form 8-K/A filed with the Securities and Exchange Commission on April 2, 2018.|
Condensed Consolidated Statements of Operations
(In thousands, except share and per share amounts)
|Three Months Ended March 31,|
|Research and development||3,408||3,879|
|General and administrative||2,010||678|
|Total operating expenses||5,418||4,557|
|Loss from operations||(3,915||)||(2,247||)|
|Bargain purchase gain||6,988||—|
|Other income and expenses, net||(731||)||(549||)|
|Provision for income taxes||(28||)||—|
|Net income (loss)||2,314||$||(2,796||)|
|Net income (loss) attributable to common shareholders||$||1,975||$||(3,506||)|
|Net income (loss) per share - basic||$||0.54||$||(25.84||)|
|Shares used in computing net income (loss) per share, basic||3,656,350||135,658|
|Net income (loss) per common share - diluted||$||0.49||$||(25.84||)|
|Shares used in computing net income (loss) per share, diluted||5,299,751||135,658|
Stern Investor Relations
Carl Mauch, 212-362-1200