Vaxart ((VXRT)) has held its Q2 earnings call. Read on for the main highlights of the call.
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The recent earnings call for Vaxart painted a picture of both optimism and caution. The company reported strong financial growth and promising vaccine development results, but also faced significant challenges, including a stop work order on a major trial and issues with stock listing compliance. This mix of positive advancements and operational uncertainties created a balanced sentiment during the call.
Significant Increase in Revenue
Vaxart reported a remarkable increase in revenue for the second quarter of 2025, reaching $39.7 million compared to $6.4 million in the same period of 2024. This growth was primarily driven by the BARDA contract awarded in June 2024, showcasing the company’s ability to secure substantial government contracts and enhance its financial standing.
Positive Phase I Norovirus Vaccine Results
The company announced encouraging results from its second-generation norovirus vaccine, which increased blocking antibodies with statistical significance in the high-dose cohort. These findings suggest the potential for first-in-class or best-in-class capabilities, positioning Vaxart as a leader in norovirus vaccine development.
Avian Influenza Vaccine Success in Preclinical Trials
Vaxart’s avian influenza vaccine demonstrated 100% protection against death in a ferret challenge model during preclinical trials. This success underscores the vaccine’s potential for further development and opens doors for future partnerships.
Stop Work Order on COVID-19 Phase IIb Trial
A second stop work order was issued for Vaxart’s COVID-19 Phase IIb trial, impacting future enrollments despite having already enrolled 5,000 participants. This development poses challenges for the trial’s progression and future data collection.
Nasdaq Listing Challenges
Vaxart faced challenges with its NASDAQ listing, which was suspended due to non-compliance with the $1 minimum bid price requirement. As a result, the company’s stock is now trading on the OTCQX market, presenting new hurdles for investor relations and market perception.
Reduction in Workforce
In an effort to decrease operating costs, Vaxart implemented a 21% reduction in its workforce during the second quarter of 2025. This move aligns with the company’s strategy to streamline operations and focus on core business needs.
Forward-Looking Guidance
Looking ahead, Vaxart projects a cash runway into the first quarter of 2026, ending the quarter with $26.3 million in cash, cash equivalents, and investments. The company anticipates data from the COVID-19 Phase IIb trial by 2026 and plans to advance its norovirus program to a Phase IIb study, contingent on securing additional funding or partnerships. Vaxart remains focused on strategic partnerships and funding opportunities to support its ongoing initiatives.
In summary, Vaxart’s earnings call revealed a company navigating both growth and challenges. While financial gains and promising vaccine developments are encouraging, operational hurdles and compliance issues present obstacles that the company must address. Investors will be keenly watching how Vaxart manages these dynamics in the coming quarters.