Vaxart’s Earnings Call: Revenue Soars Amid COVID-19 Hurdles

Vaxart ((VXRT)) has held its Q4 earnings call. Read on for the main highlights of the call.

The recent earnings call for Vaxart presented a balanced perspective, highlighting significant advancements in the company’s norovirus vaccine development and a notable increase in revenue. However, these positive developments were tempered by challenges in the COVID-19 program, primarily due to a stop work order impacting ongoing studies.

Increased Revenue

Vaxart reported a substantial increase in revenue for 2024, reaching $28.7 million compared to $7.4 million in 2023. This growth was primarily driven by government contracts related to BARDA and non-cash royalty revenue from sales of Inavir in Japan.

Progress in Norovirus Vaccine Development

The company has made significant strides in its norovirus vaccine program, initiating a Phase 1 trial for its second-generation oral vaccine constructs. Promising preclinical data suggests these constructs may elicit more potent responses than their first-generation counterparts.

Positive Safety Profile

The norovirus oral vaccine candidate has demonstrated a benign safety and tolerability profile, consistent with previous studies. There were no significant differences in adverse events between the vaccine candidate and placebo groups.

Publication in Science Translational Medicine

Vaxart’s platform received recognition with the publication of two articles in Science Translational Medicine. These studies underscored the platform’s efficiency in generating mucosal antibody responses and supporting immunogenicity in older adults.

Cash Runway Extended

To ensure financial stability, Vaxart has implemented measures to reduce expenses, including a workforce reduction. These steps are expected to extend the company’s cash runway into the fourth quarter of 2025.

Stop Work Order for COVID-19 Study

The US Department of Health and Human Services issued a stop work order affecting the BARDA-funded Project NextGen award. This order impacts the planned 10,000-participant portion of the COVID-19 study.

Uncertainty in COVID-19 Program

The stop work order has introduced uncertainty into Vaxart’s COVID-19 program, necessitating adjustments to extend the cash runway and impacting the 10,000-participant trial.

Forward-Looking Guidance

Vaxart remains committed to developing next-generation oral pill vaccines, with ongoing efforts in its COVID-19 and norovirus programs. Despite the temporary pause in the COVID-19 study, the company continues to monitor a sentinel cohort of 400 participants. Plans for Phase 2 and Phase 3 trials of the norovirus vaccine are anticipated as early as 2025 and 2026, respectively. Financially, Vaxart concluded 2024 with $51.7 million in cash and is exploring partnerships and non-dilutive funding to support its initiatives.

In conclusion, Vaxart’s earnings call highlighted a mix of progress and challenges. While the company has achieved significant revenue growth and advancements in its norovirus vaccine development, uncertainties in the COVID-19 program pose challenges. Nonetheless, Vaxart’s commitment to innovation and strategic financial management positions it well for future endeavors.