Vaxart Announces $10.0 Million Registered Direct Offering with RA Capital Management
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The capital raise by Vaxart, Inc. through a registered direct offering with RA Capital Management is a strategic move to bolster the company's financial position. With a gross proceed of approximately $10 million, it's evident that Vaxart is aiming to strengthen its liquidity to support ongoing operations. The offering price of $0.65 per share provides a quantifiable metric for current valuation benchmarks within the biotechnology sector, which investors can use to assess the company's market perception. It's crucial to consider the dilutive effect of issuing over 15 million new shares on existing shareholders, as this can impact earnings per share and ownership percentages.
Investors should monitor the company's burn rate and the efficiency of capital deployment towards its operational goals. The intent to allocate funds for general corporate purposes, including working capital and operating expenses, is fairly standard, but the specific mention of capital expenditures could signal upcoming investments in the company's oral pill vaccine platform. The long-term success of these investments is contingent on the clinical and commercial viability of the platform, which warrants a close examination of Vaxart's R&D pipeline and regulatory milestones.
Vaxart's focus on advancing its oral pill vaccine platform holds significant implications for the vaccine market. Traditional vaccines often require cold chain logistics, which can be cost-intensive and logistically challenging, especially in low-resource settings. An oral pill vaccine could circumvent these limitations, potentially increasing vaccine accessibility and compliance rates. The company's claim of clinical data validation merits attention from the medical community, as it suggests a level of efficacy and safety that could disrupt the current vaccine administration paradigm.
The potential public health benefits of an effective oral vaccine cannot be overstated, as it could facilitate rapid and widespread immunization during pandemics or in regions with limited healthcare infrastructure. However, the journey from clinical proof of concept to marketable product is fraught with regulatory hurdles and clinical trial challenges. Stakeholders should evaluate the robustness of the clinical data and the scalability of the production process, as these factors will be pivotal in determining the platform's market potential and, by extension, the company's financial trajectory.
The investment by RA Capital Management in Vaxart underscores a vote of confidence in the company's strategic direction, particularly its innovative oral pill vaccine platform. From a market research perspective, the ability to offer a needle-free vaccination option could significantly alter consumer preferences and lead to a shift in market dynamics. It is imperative to analyze the competitive landscape, identifying potential market entrants and evaluating the strength of Vaxart's intellectual property to safeguard its niche.
Understanding the target demographics for oral vaccines, along with the regulatory environment across different regions, is essential for projecting market penetration rates and revenue potential. The global vaccine market is highly competitive and subject to rapid changes in technology and consumer behavior. Therefore, continuous monitoring of market trends and consumer sentiment towards oral vaccination will be crucial in assessing the long-term commercial success of Vaxart's product offerings and its impact on the company's stock performance.
SOUTH SAN FRANCISCO, Calif., Jan. 16, 2024 (GLOBE NEWSWIRE) -- Vaxart, Inc. (Nasdaq: VXRT) today announced that it has entered into a common stock purchase agreement with RA Capital Management for the sale of 15,384,615 shares of its common stock in a registered direct offering at an offering price of
Gross proceeds are approximately
“We appreciate the financial backing by RA Capital as we continue to progress our oral pill vaccine platform,” said Dr. Michael J. Finney, Vaxart’s Interim Chief Executive Officer. “We believe the clinical proof of data we have generated to date has validated our platform, which carries transformative potential to change how people get vaccinated globally. With this financing, we can continue to advance our programs, with the goal of bringing to market oral pill vaccine(s) that carries significant public health benefits.”
The closing of the registered direct offering is expected to occur on or about January 18, 2024, subject to the satisfaction of customary closing conditions.
The shares of common stock are being offered by Vaxart pursuant to a shelf registration statement on Form S-3. A final prospectus supplement and accompanying prospectus relating to and describing the terms of the offering will be filed with the SEC and is available on the SEC’s website at www.sec.gov.
Electronic copies of the final prospectus supplement and accompanying prospectus may be obtained when available, on the SEC’s website at http://www.sec.gov or by contacting Vaxart Investor Relations, 170 Harbor Way, Suite 300, South San Francisco, CA 94080, by email: investors@vaxart.com or by telephone: (650) 550-3500.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or jurisdiction.
About Vaxart
Vaxart is a clinical-stage biotechnology company developing a range of oral recombinant vaccines based on its proprietary delivery platform. Vaxart vaccines are designed to be administered using pills that can be stored and shipped without refrigeration and eliminate the risk of needle-stick injury. Vaxart believes that its proprietary pill vaccine delivery platform is suitable to deliver recombinant vaccines, positioning the company to develop oral versions of currently marketed vaccines and to design recombinant vaccines for new indications. Vaxart’s development programs currently include pill vaccines designed to protect against coronavirus, norovirus, seasonal influenza, and respiratory syncytial virus (RSV), as well as a therapeutic vaccine for human papillomavirus (HPV), Vaxart’s first immune-oncology indication. Vaxart has filed broad domestic and international patent applications covering its proprietary technology and creations for oral vaccination using adenovirus and TLR3 agonists.
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 and the timing of such results, commercialization agreements and licenses, and beliefs and expectations of management are forward-looking statements. These forward-looking statements may be accompanied by such words as "should," "believe," "could," "potential," "will," "expected," “anticipate,” "plan," and other words and terms of similar meaning. Examples of such statements include, but are not limited to, statements relating to Vaxart's ability to develop and commercialize its product candidates, including its vaccine booster products; Vaxart's expectations regarding clinical results and trial data, and the timing of receiving and reporting such clinical results and trial data; and Vaxart's expectations with respect to the effectiveness of its product candidates. Vaxart may not actually achieve the plans, carry out the intentions, or meet the expectations or projections disclosed in the forward-looking statements, and you should not place undue reliance on these forward-looking statements. Actual results or events could differ materially from the plans, intentions, expectations, and projections disclosed in the forward-looking statements. Various important factors could cause actual results or events to differ materially from the forward-looking statements that Vaxart makes, including failure to complete the offering; uncertainties inherent in research and development, including the ability to meet anticipated clinical endpoints, commencement, and/or completion dates for clinical trials, regulatory submission dates, regulatory approval dates, and/or launch dates, as well as the possibility of unfavorable new clinical data and further analyses of existing clinical data; the risk that clinical trial data are subject to differing interpretations and assessments by regulatory authorities; whether regulatory authorities will be satisfied with the design of and results from the clinical studies; decisions by regulatory authorities impacting labeling, manufacturing processes, and safety that could affect the availability or commercial potential of any product candidate, including the possibility that Vaxart's product candidates may not be approved by the FDA or non-U.S. regulatory authorities; that, even if approved by the FDA or non-U.S. regulatory authorities, Vaxart's product candidates may not achieve broad market acceptance; that a Vaxart collaborator may not attain development and commercial milestones; that Vaxart or its partners may experience manufacturing issues and delays due to events within, or outside of, Vaxart's or its partners' control; difficulties in production, particularly in scaling up initial production, including difficulties with production costs and yields, quality control, including stability of the product candidate and quality assurance testing, shortages of qualified personnel or key raw materials, and compliance with strictly enforced federal, state, and foreign regulations; that Vaxart may not be able to obtain, maintain, and enforce necessary patent and other intellectual property protection; that Vaxart's capital resources may be inadequate; Vaxart's ability to resolve pending legal matters; Vaxart's ability to obtain sufficient capital to fund its operations on terms acceptable to Vaxart, if at all; the impact of government healthcare proposals and policies; competitive factors; and other risks described in the "Risk Factors" sections of Vaxart's Quarterly and Annual Reports filed with the SEC. Vaxart does not assume any obligation to update any forward-looking statements, except as required by law.
Contacts
| Vaxart Media Relations: | Investor Relations: |
| Mark Herr | Andrew Blazier |
| Vaxart, Inc. | FINN Partners |
| mherr@vaxart.com | IR@vaxart.com |
| (203) 517-8957 | (646) 871-8486 |
FAQ
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