ORANGE COUNTY, Calif. - Virgin Galactic Holdings, Inc. (NYSE: NYSE:SPCE) has announced a partnership with the International Institute for Astronautical Sciences (IIAS) to launch three research astronauts on a future mission aboard the company's Delta Class spaceship. This collaboration marks the second research endeavor between Virgin Galactic and IIAS, following the Galactic 05 mission in November 2023.
The upcoming mission, expected within the first year of the Delta Class spaceship's commercial service scheduled for 2026, aims to build on previous research that studied fluid behavior in microgravity. This work is critical for the development of future medical technologies and life support systems.
Astronaut Kellie Gerardi, IIAS Director of Human Spaceflight Operations, will lead the mission. She will be joined by Dr. Shawna Pandya, a physician and Director of IIAS's Space Medicine Group, and Dr. Norah Patten, an aeronautical engineer. Both are seasoned bioastronautics researchers.
Gerardi, who also participated in the Galactic 05 flight, expressed enthusiasm about the upcoming mission, highlighting the quality and consistency of the microgravity environment provided by Virgin Galactic's system. The IIAS team plans to introduce new research and expand upon previous findings by flying additional fluid cells with upgraded payload features such as enhanced camera quality and accelerometer measurements.
Virgin Galactic's Vice President of Government Affairs and Research Operations, Sirisha Bandla, also commented on the significance of the partnership, noting the potential for iterative and innovative research campaigns in the suborbital space-based research field.
The Delta Class spaceships, which can accommodate up to six mission specialists or four specialists and two payload racks, are designed to offer increased access to microgravity environments. Virgin Galactic anticipates that each Delta spaceship will be capable of flying up to eight missions per month, a significant increase over the monthly capacity of the company's original spaceship, VSS Unity.
Virgin Galactic, known for pioneering human spaceflight for private individuals and researchers, continues to focus on the development of advanced air and space vehicles to drive scale and profitability.
The information for this article is based on a press release statement from Virgin Galactic Holdings, Inc.
In other recent news, Virgin Galactic has been in the spotlight for several developments. The company announced a 1-for-20 reverse stock split, aiming to comply with the New York Stock Exchange's minimum bid price requirement for continued listing. This move will convert every 20 existing shares into one new share of common stock.
In financial updates, TD Cowen revised Virgin Galactic's stock price target to $2.00 from $2.50, while maintaining a Buy rating on the stock. The firm's analysis suggests that Virgin Galactic's timeline to achieve positive Free Cash Flow by the second half of 2026 is still achievable.
On the operational front, Virgin Galactic has outlined ambitious plans for its space tourism business. The company is set to retire VSS Unity after its last flight on June 8, transitioning to Delta-class spaceships. These new spaceships are expected to significantly increase flight cadence and revenue, with a projected annual run rate of $450 million.
In parallel, SpaceX's Starship rocket embarked on its fourth test flight from South Texas, aiming to withstand the intense heat of re-entry through Earth's atmosphere. This is part of SpaceX's test-to-failure approach to rocket development, pushing each prototype further than the last. The importance of Starship's success is underscored by NASA's reliance on it for the 2026 lunar mission.
These recent developments highlight the dynamic nature of the aerospace industry, with companies like Virgin Galactic and SpaceX pushing boundaries and setting ambitious targets for the future.
InvestingPro Insights
As Virgin Galactic Holdings, Inc. (NYSE: SPCE) forges ahead with its ambitious space endeavors, the financial landscape of the company reveals a mixed picture. On the positive side, Virgin Galactic holds more cash than debt on its balance sheet, which could provide a cushion for its high-stakes investments in space technology and research. Additionally, the stock is trading at a low Price/Book multiple of 0.5, suggesting that the company's assets are potentially undervalued by the market when compared to the stock price as of the last twelve months as of Q1 2024.
On the flip side, the company is quickly burning through cash and analysts do not anticipate it will be profitable this year. This is underscored by the significant revenue growth of 251.91% in the last twelve months as of Q1 2024, yet this has not translated into positive gross profit margins or operating income, with a reported gross profit margin of -767.52% and an operating income margin of -5657.85% for the same period.
The stock has experienced considerable volatility, with the price having fallen significantly over the last three months, and a one-week total return of -30.65% as of a recent 2024 date. This volatility may be of interest to investors looking for high-risk, high-reward opportunities.
For those interested in a deeper dive into Virgin Galactic's financial health and stock performance, there are additional InvestingPro Tips available. Subscribers can access these insights, which could prove invaluable for making informed decisions. For those who are yet to subscribe, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. With a total of 19 additional tips listed on InvestingPro, investors can gain a more comprehensive understanding of Virgin Galactic's market position and future prospects.
Virgin Galactic's partnership with IIAS and its commitment to advancing space-based research and technology continues to capture the imagination of investors and space enthusiasts alike. The company's financial metrics and stock performance, as detailed by InvestingPro, provide a grounded perspective on the risks and opportunities associated with this pioneering enterprise.
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