Vaxart (VXRT) 8 Aug 24 2024 Q2 Earnings call transcript

In Vaxart's recent earnings call for the second quarter of 2024, the company showcased a robust pipeline, particularly in the areas of COVID-19 and norovirus vaccines, demonstrating a strategic focus on addressing significant infectious disease threats. The call, led by CEO Steven Lo, provided insights into the company's financial health, ongoing initiatives, and regulatory updates.

A Strong Foundation and Strategic Vision

Steven Lo, who joined Vaxart as CEO in March 2024, emphasized his confidence in the company's transformational potential. He highlighted the recent $453 million award from BARDA, a significant achievement that underscores Vaxart's potential to redefine vaccine manufacturing and distribution. The CEO's optimism was further reflected in his belief in the company's oral pill vaccine platform, which focuses on mucosal immunity, potentially offering cross-reactive protection against various strains and contributing to a safer and more effective approach to vaccines.

COVID-19 and Norovirus Programs: Progress and Challenges

Vaxart's COVID-19 program has been a major focus, with the company announcing the initiation of a Phase IIb trial under BARDA's Project NextGen, a $5 billion initiative aimed at developing innovative vaccines and therapeutics. The trial, set to enroll approximately 10,000 participants, will determine the relative efficacy, safety, and immunogenicity of Vaxart's oral pill COVID-19 vaccine candidate against an approved mRNA comparator. Despite ongoing discussions with the FDA, the company remains optimistic about the trial's commencement, pending alignment with regulatory requirements.

The norovirus program also saw progress, with positive top-line results from a Phase I clinical trial focused on lactating mothers. This development, partially funded by the Bill & Melinda Gates Foundation, is a significant step towards achieving the long-term goal of protecting infants through passive antibody transfer. Despite challenges, including ongoing FDA discussions, Vaxart remains confident in the program's potential to yield positive results and contribute to global health.

Financial Position and Outlook

Vaxart's financial health is crucial to its ambitious goals, and the company's second quarter financial results show a promising trajectory. With revenue of $6.4 million in Q2 2024, primarily driven by the BARDA contract, the company's cash position has been extended into 2026, providing a solid foundation for its ongoing efforts. This financial stability is essential in driving innovation and advancing Vaxart's programs towards commercialization.

A Look Ahead

As Vaxart navigates through the challenges and opportunities of its ongoing programs, it remains committed to its mission of addressing infectious diseases through groundbreaking technology. The company's strategic focus on mucosal immunity, particularly in the context of COVID-19 and norovirus vaccines, positions it at the forefront of vaccine development. With regulatory discussions ongoing and a robust financial position, Vaxart is well-positioned to advance its programs and make a significant impact on global health.