Biopharmaceutical company Vaxart, Inc. (NASDAQ:VXRT) has received a notice from Nasdaq stating that it no longer meets the minimum bid price requirement for continued listing on The Nasdaq Capital Market. The notice, dated Monday, July 2, 2024, highlighted that Vaxart's common stock had closed below the $1.00 minimum bid price for 30 consecutive business days, from May 17, 2024, to July 1, 2024.
Despite this warning, the notice does not trigger the immediate delisting of Vaxart's stock. The company has been given a 180-day period, until December 30, 2024, to regain compliance with the Nasdaq's bid price rule. Compliance can be achieved if Vaxart's stock closes at $1.00 per share or higher for at least ten consecutive business days during this period. Nasdaq may extend this ten-day period at its discretion.
If Vaxart does not meet the requirement within the initial 180 days, it may be granted a second 180-day period to achieve compliance, under certain conditions. These include meeting the market value of publicly held shares and other initial listing requirements, with the exception of the bid price. Vaxart would also need to inform Nasdaq of its intention to resolve the issue, potentially through a reverse stock split.
The company is considering options to address the bid price deficiency and regain compliance. However, there is no guarantee that Vaxart will be successful in meeting the minimum bid price requirement or maintaining compliance with other Nasdaq listing standards.
This development comes as the latest challenge for Vaxart, which has undergone several name changes in its history, previously known as Aviragen Therapeutics, Inc., Biota Pharmaceuticals, Inc., and NABI Biopharmaceuticals. The company, headquartered in South San Francisco, California, specializes in developing vaccines and other therapeutic products.
Investors are closely monitoring the situation, as Vaxart's ability to remain listed on the Nasdaq Capital Market is crucial for its access to capital markets and investor visibility. The information in this article is based on a press release statement from Vaxart.
In other recent news, Vaxart Inc. has been awarded a significant BARDA-funded project NextGen award, potentially totaling up to $453 million. This funding is set to support a Phase IIb study involving 10,000 participants, comparing Vaxart's oral COVID-19 vaccine candidate against an approved mRNA vaccine.
B.Riley has raised the price target for Vaxart shares to $2.50, maintaining a Buy rating. Vaxart plans to start enrolling participants for the trial in mid-2024, with an interim analysis possible by the first quarter of 2025.
The company has also expanded its authorized shares from 250 million to 350 million and made amendments to its equity incentive and employee stock purchase plans. Vaxart's Q1 2024 revenue stood at $2.2 million, with cash and investments amounting to $36.7 million, projected to last until late 2024. These are recent developments in the company's operations.
InvestingPro Insights
Amidst the concerns about Vaxart's Nasdaq listing status, a glance at the company's financial health and market performance offers additional context. According to InvestingPro data, Vaxart's market capitalization stands at a modest $148.72 million, reflecting the scale of the company in the biopharmaceutical industry.
The company's revenue growth is notably high, with an increase of 1174.75% over the last twelve months as of Q1 2024, which could be indicative of a significant development or deal that has positively impacted sales figures. However, this growth is juxtaposed against a stark gross profit margin of -660.08%, suggesting that despite increasing revenues, profitability remains a distant goal.
InvestingPro Tips further reveal that analysts are wary about Vaxart's financial trajectory, expecting a sales decline in the current year and doubting the company's profitability within the same timeframe. Moreover, the stock price has experienced a substantial drop of 40.25% over the last three months, likely contributing to the Nasdaq's minimum bid price warning. On a more positive note, Vaxart's liquid assets do exceed its short-term obligations, which may provide some financial cushioning in the near term.
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