Vaxart Announces Second Quarter 2018 Financial Results and Corporate Update
"We are encouraged by the recent publications in Vaccine and
Second Quarter 2018 and Recent Highlights:
May 31, 2018, the Company presented additional data on the previously disclosed Phase 1 norovirus vaccine trial in a poster presentation at the American Society of Microbiology 2018. As described in the poster, the Vaxart GI.1 norovirus tablet vaccine generated IgG and IgA antibodies in serum that were highly cross-reactive against other GI genotypes, specifically GI.3 and GI.4.
June 4, 2018, Vaxartreported the topline results from a Phase 2 clinical trial evaluating teslexivir, a small-molecule antiviral for the treatment of condyloma that Vaxartobtained in the acquisition of Aviragen earlier in 2018, in which the primary efficacy endpoint was not achieved.
June 27, 2018, the Company announced the publication of preclinical results from its oral F-protein based Respiratory Syncytial Virus (RSV-F) vaccine in Vaccine. As described in the article, the oral RSV-F vaccine candidate provided complete sterilizing protection against RSV infection in the cotton rat challenge model at the target dose.
July 12, 2018, Vaxartannounced the publication of the comprehensive results of the previously disclosed Phase 1 clinical trial with its norovirus oral tablet vaccine in the Journal of Clinical Investigation Insight. As reported in the article, the vaccine generated robust systemic and mucosal immune responses, including mucosal IgA, memory B cells, and serum blocking antibody titers (BT50), all potential correlates of protection.
Second Quarter 2018 Financial Results
Vaxartended the quarter with cash and cash equivalents of $23.9 millioncompared to $17.5 millionat March 31, 2018. The increase was primarily due to $12.0 millionreceived from royalty payments offset by cash used in operations.
Revenue for the quarter was
$0.6 millioncompared to $1.9 millionin the second quarter of 2017. The decrease was due to lower revenues from the contract with HHS BARDA, where activities are winding down.
Research and development expenses were
$5.0 millionfor the quarter compared to $4.3 millionfor the second quarter of 2017. The increase was due to additional personnel, amortization of intangibles and clinical trial costs resulting from the merger with Aviragen, offset by lower expenditures on the HHS BARDA activities and Vaxart’s norovirus Phase 1 clinical trial.
General and administrative expenses were
$1.8 millionfor the quarter compared to $0.7 millionfor the second quarter of 2017. The increase was due to the additional costs of being a public company, including the costs of additional personnel and higher legal and other services.
During the quarter,
Vaxartrecognized an impairment charge of $1.6 millionresulting from the write-off of the teslexivir intangible asset acquired in the merger with Aviragen.
Note Regarding Forward-Looking Statements
This press release contains forward-looking statements that involve
substantial risks and uncertainties. All statements, other than
statements of historical facts, included in this press release regarding
our strategy, prospects, plans and objectives, results from preclinical
and clinical trials, commercialization agreements and licenses, beliefs
and expectations of management are forward-looking statements. These
forward-looking statements may be accompanied by such words as
“believe,” “could,” “potential”, “will” and other words and terms of
similar meaning. Examples of such statements include, but are not
limited to, statements relating to the Vaxart’s ability to develop and
commercialize its product candidates and clinical results and trial
|Condensed Consolidated Balance Sheets|
|June 30, 2018||December 31, 2017|
|Cash and cash equivalents||$||23,921||$||1,571|
|Prepaid and other current assets||1,021||137|
|Property and equipment, net||1,034||730|
|Intangible assets, net||21,222||40|
|Liabilities and stockholders’ equity (deficit)|
|Accrued and other current liabilities||2,528||1,605|
|Liability related to sale of future royalties||17,066||—|
|Secured promissory note||4,363||4,968|
|Convertible promissory notes, related party||—||35,282|
|Stockholders’ equity (deficit)||22,353||(38,722||)|
|Total liabilities and stockholders’ equity (deficit)||$||47,759||$||4,523|
Derived from the audited financial statements of Vaxart Biosciences, Inc. for the year ended December 31, 2017, included on the Form 8-K/A filed with the Securities and Exchange Commission on April 2, 2018.
|Condensed Consolidated Statements of Operations|
(In thousands, except share and per share amounts)
|Three Months Ended June 30,||Six Months Ended June 30,|
|Research and development||5,012||4,324||8,420||$||8,203|
|General and administrative||1,771||653||3,781||1,331|
|Impairment of intangible assets||1,600||—||1,600||—|
|Total operating expenses||8,383||4,977||13,801||9,534|
|Loss from operations||(7,775||)||(3,123||)||(11,690||)||(5,370||)|
|Bargain purchase gain||(328||)||—||6,660||—|
|Other income and expenses, net||(767||)||(415||)||(1,498||)||(694||)|
|Provision for income taxes||(1||)||—||(29||)||—|
|Net loss attributable to common shareholders||$||(8,871||)||$||(4,256||)||$||(6,896||)||$||(7,762||)|
|Net loss per common share, basic and diluted||$||(1.24||)||$||(31.37||)||$||(1.26||)||$||(57.22||)|
|Shares used in computing net loss per share, basic and diluted||7,141,189||135,658||5,477,265||135,658|
Stern Investor Relations
Carl Mauch, 212-362-1200