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Issuing its fourth-quarter 2022 financial data on Wednesday, vaccine developer Vaxart (NASDAQ:VXRT) announced a reorganization of its portfolio to prioritize its oral norovirus vaccine program and postpone further COVID-19 clinical trials.
The decision, which also entails a 27% reduction in its workforce in the first quarter of 2023, it is expected to extend Vaxart (VXRT) cash track in the first quarter of 2024.
“We believe this is the best strategy to advance our oral vaccine platform while positioning Vaxart for future success,” said Chief Executive Andrei Floroiu.
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 primary data in the third quarter of 2023.
The company also expects top-line data from its Phase 2 dose-ranging study for the bivalent oral norovirus vaccine candidate in mid-2023.
The decision to delay clinical studies of COVID-19 also applies to the company’s Omicron human challenge trial in the UK. However, preclinical biotechnology development of an oral COVID-19 vaccine candidate will continue.
Noting that it has access to all cash and deposits at the 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% year-over-year decrease to $46.0 million as of year-end 2022.
Read: Seeking Alpha contributor Bret Jensen reaffirmed his Hold rating on Vaxart (VXRT) in December, citing liquidity concerns and uncertainty about the company’s COVID vaccine candidate.
