Vaxart to delay COVID-19 clinical trials in portfolio reorganization
Aajan
Issuing its Q4 2022 financials on Wednesday, vaccine developer Vaxart (NASDAQ:VXRT) announced a portfolio reorganization to prioritize its oral norovirus vaccine program and postpone further COVID-19 clinical trials.
The decision, which also involves a reduction of 27% of its staff count in Q1 2023, is expected to extend Vaxart’s (VXRT) cash runway into Q1 2024.
“We believe this is the best strategy for advancing our oral vaccine platform while positioning Vaxart for future success,” Chief Executive Andrei Floroiu remarked.
As part of its focus on the norovirus vaccine program, Vaxart (VXRT) intends to add additional cohorts in the ongoing Phase 2 GI.1 norovirus challenge study, which is anticipated to generate topline data in Q3 2023.
The company also expects topline data from its Phase 2 dose-ranging study for bivalent norovirus oral vaccine candidate in mid-2023.
The decision to delay COVID-19 clinical studies also applies to the company’s Omicron Human Challenge Trial in the U.K. However, the biotech’s preclinical development of a COVID-19 oral vaccine candidate will continue.
Noting that it has access to all cash and deposits held at troubled Silicon Valley Bank (SVB), Vaxart (VXRT) said it will move these funds to a larger institution. However, the company’s cash, cash equivalents, and restricted cash indicated a ~68% YoY decline to $46.0M as of 2022 year-end.
Read: Seeking Alpha contributor Bret Jensen reaffirmed his Hold rating on Vaxart (VXRT) in December, citing liquidity concerns and uncertainty on the company’s COVID vaccine candidate.