- PreHevbrio (Hepatitis B Vaccine [Recombinant]) global net
revenue increased 90% quarter-over-quarter from Q4 2022 to Q1 2023
as access to PreHevbrio continues to broaden – now available at
several U.S. retail pharmacy chains including Costco, RiteAid, and
Walmart
- Therapeutic Hepatitis B: Initial Phase 2 study data announced,
which suggest that the combination of VBI-2601 and an HBV siRNA has
the potential to be a meaningful part of a functional cure regimen
– additional Phase 2 data expected in the second half of 2023
- Previously announced cost-reduction measures in place with an
expected reduction in operating expenses of 30-35% in the second
half of 2023 compared with the second half of 2022
VBI Vaccines Inc. (Nasdaq: VBIV) (VBI), a biopharmaceutical
company driven by immunology in the pursuit of powerful prevention
and treatment of disease, today provided a business update and
announced financial results for the quarter ended March 31,
2023.
Jeff Baxter, VBI’s President and CEO, commented: “As highlighted
earlier this year, we continue to focus on three core priorities:
(1) making a difference in the fight against hepatitis B including
prevention and treatment, (2) advancing key development programs
that target significant unmet needs with meaningful near-term
milestones, and (3) managing our operational expenses and capital
to fuel sustainable growth and value for key stakeholders –
patients, healthcare providers, and shareholders. We continue to
make good progress across all three endeavors, and I am especially
excited to note the increase in use of PreHevbrio in the U.S. With
an ever-expanding access and distribution network in place, and our
focus on commercial execution, we hope and expect to see this
momentum continue throughout 2023 and beyond. Complementing our
work in prevention, the encouraging clinical data announced earlier
this year from our partnership with Brii Biosciences underscores
the belief that a functional cure with broader efficacy for more
hepatitis B patients is within reach, and that our
immunotherapeutic candidate, VBI-2601, has the potential to be a
meaningful part of that combination regimen.”
Recent Key Program Achievements and Projected Upcoming
Milestones
Hepatitis B (HBV)
PreHevbrio [Hepatitis B Vaccine (Recombinant)]
- Net product sales increased 90% from Q4 2022, with $0.5 million
earned in Q1 2023
- Product sales are net of the provision for discounts,
chargebacks, rebates, and fees – in the aggregate, these discounts
reduced sales by $0.3 million in Q1 2023, from $0.8 million gross
sales to $0.5 million net sales.
- PreHevbrio is now available for purchase at six retail pharmacy
chains in the U.S., including Costco, RiteAid, Walmart, and three
of the top 10 regional retail pharmacy networks, as well as through
the U.S. Department of Veterans Affairs (VA), Federal Bureau of
Prisons, and at certain military treatment facilities
- Work is underway to continue to expand the number of U.S.
integrated delivery networks (IDNs) and hospital systems that offer
PreHevbrio
- Access continues to broaden for PreHevbrio in the U.S., with a
170% increase in the total number of customer orders in Q1 2023
compared to Q4 2022
- U.S. coverage rates remain strong for the PreHevbrio-specific
Current Procedural Terminology (CPT) code across Medicare,
commercial, and state Medicaid plans
- Q1 2023: Initial stocking order supplied to VBI’s
marketing and distribution partner, Valneva, for the U.K. market at
the end of Q1 2023 – brand name in U.K. and Europe is PreHevbri
[Hepatitis B Vaccine (Recombinant, Adsorbed)]
- Q2 2023: PreHevbri is expected to be available in
certain European countries beginning in the second quarter of
2023
- By Year-End 2023: Availability expected in Canada under
brand name PreHevbrio [3-Antigen Hepatitis B Vaccine
(Recombinant)]
VBI-2601 (BRII-179): HBV Immunotherapeutic Candidate
- Q1 2023: Initial Phase 2 combination study data,
announced in February 2023, suggest VBI-2601 has potential to be a
valuable immunomodulatory component of a functional cure
regimen
- H2 2023: Interim topline clinical data expected from
part one of the two-part Phase 2a/2b combination study evaluating
VBI-2601 (BRII-179) as an add-on to existing pegylated interferon
(PEG-IFN-α) and nucleos(t)ide reverse transcriptase inhibitor
(Nrtl) therapy in non-cirrhotic chronic HBV patients
- Around Year-End 2023: Additional data from Phase 2
combination study expected
Glioblastoma (GBM)
VBI-1901: Cancer Vaccine Immunotherapeutic Candidate
- Mid-year 2023: Expected initiation of next phase of
development in recurrent GBM setting
- Q3 2023: Expected initiation of VBI-1901 study arm, as
part of the Individualized Screening Trial of Innovative
Glioblastoma Therapy (INSIGhT), a Phase 2 adaptive platform trial,
in combination with Agenus’ anti-PD-1, balstilimab, in the primary
GBM setting
COVID-19 & Coronaviruses
VBI-2901: Multivalent Coronavirus Vaccine Candidate
- Mid-year 2023: Interim data expected from Phase 1 study
of VBI-2901, VBI’s multivalent eVLP vaccine candidate that
expresses the SARS-CoV-2 (COVID-19), SARS-CoV-1 (SARS), and
MERS-CoV (MERS) spike proteins
Additional Corporate Updates
Leadership Appointments
- April 2023: Nell Beattie appointed as Chief Financial Officer
and Head of Corporate Development, and member of VBI’s Board of
Directors
- April 2023: Vaughn Himes, Ph.D., Chief Technical Officer at
Seagen Inc., appointed to VBI’s Board of Directors – Link Here
Recent Peer-Reviewed Publications
- May 2023: Talbird, Anderson, et al., “Cost-effectiveness of a
3-Antigen Versus Single-Antigen Vaccine for the Prevention of
Hepatitis B in Adults in the United States” published in Vaccine –
Link Here
- May 2023: Diaz-Mitoma, Vesikari, et al., “The Persistence of
Seroprotective Levels of Antibodies After Vaccination With
PreHevbrio, a 3-Antigen Hepatitis B Vaccine” published in Vaccine –
Link Here
Organizational Changes and Cost Savings
- April 4, 2023: Announcement of plans to reduce internal
workforce and operational expenses by 30-35% - a reduction which
began in April and is expected to largely complete by the end of
June 2023. As a result of this and other reductions in spend,
operating expenses from normal business are expected to be 30-35%
lower in the second half of 2023 compared to the second half of
2022.
First Quarter 2023 Financial Results
- Cash Position: VBI ended the first quarter of 2023 with
$40.4 million in cash as compared with $62.6 million in cash as of
December 31, 2022.
- Revenues, net: Revenues, net for the first quarter of
2023 was $0.5 million as compared to $0.1 million for the same time
period in 2022. The revenue increase of 285% was a result of an
increase in product sales of PreHevbrio in the U.S., in addition to
initial product sales of PreHevbri to our partner, Valneva, in the
U.K., offset by lower sales in the Israeli market.
- Cost of Revenues: Cost of revenues was $3.6 million in
the first quarter of 2023 as compared to $2.8 million in the first
quarter of 2022. The increase in the cost of revenues was due to
increased product sales, direct labor costs, and inventory related
costs for our 3-antigen HBV vaccine.
- Research and Development (R&D): R&D expenses for
the first quarter of 2023 were $3.2 million as compared to $2.4
million for the first quarter of 2022. R&D expenses were offset
by $2.4 million in the first quarter of 2023 and $2.8 million in
the first quarter of 2022 due to government grants and funding
arrangements. The increase in R&D expenses was mainly related
to the continued development of our vaccine candidates,
specifically VBI-2901, as the Phase 1 study began in Q3 2022 and
completed subject enrollment during Q1 2023.
- Sales, General and Administrative (SG&A): SG&A
expenses for the first quarter of 2023 were $13.3 million as
compared to $10.9 million for the same period in 2022. The increase
in SG&A, partially offset by government grants and funding
arrangements, was a result of the increase in commercial activities
related to PreHevbrio, most notably the deployment of our
commercial field teams which occurred in the middle of Q1 2022, and
the continued development of our distribution infrastructure.
Additional increased costs include increased insurance costs,
professional costs, and labor costs.
- Net Cash Used in Operating Activities: Net cash used in
operating activities for the three months ended March 31, 2023 was
$21.7 million compared to $19.9 million for the same period in
2022. The increase in cash outflows was largely a result of an
increase in net loss, offset by the change in operating working
capital, most notably in other current assets and accounts payable.
As announced on April 4, 2023, VBI is implementing cost saving
measures that are expected to reduce operating expenses from normal
business in the second half of 2023 by 30-35% compared to the
second half of 2022.
- Net Loss and Net Loss Per Share: Net loss and net loss
per share for the first quarter of 2023 were $27.8 million and
$3.22, respectively, compared to a net loss and net loss per share
of $21.3 million and $2.47 for the first quarter of 2022,
respectively.
- Net Loss and Net Loss Per Share, Excluding Foreign Exchange
Loss: Net loss and net loss per share, excluding foreign
exchange loss, for the first quarter of 2023 were $20.9 million and
$2.43, respectively, compared to a net loss and a net loss per
share, excluding foreign exchange loss, of $16.9 million and $1.96
for the first quarter of 2022, respectively. Foreign exchange loss
for the first quarter 2023 was $6.8 million as compared to a loss
of $4.4 million for the first quarter of 2022. Certain intercompany
loans between VBI Vaccines Inc. and our subsidiaries are
denominated in a currency other than the functional currency of
each entity. The primary driver of the increase in foreign exchange
loss was the impact of the relative strengthening of the U.S. and
Canadian Dollars against the New Israeli Shekel upon translation of
these intercompany loans.
Use of Non-GAAP Financial Measures
Net Loss Excluding Foreign Exchange Loss and Net Loss per Share
Excluding Foreign Exchange Loss are non-GAAP financial measures.
VBI’s management believes that the presentation of Net Loss
Excluding Foreign Exchange Loss and Net Loss per Share Excluding
Foreign Exchange Loss is useful to investors because management
does not consider foreign exchange loss, which is primarily driven
by changes in exchange rates related to certain intercompany loans,
when evaluating VBI’s operating performance. Non-GAAP financial
measures are meant to supplement, and to be viewed in conjunction
with, GAAP financial results. The presentation of these non-GAAP
financial measures should not be considered in isolation or as a
substitute for comparable GAAP financial measures and should be
read only in conjunction with the Company’s financial statements
prepared in accordance with GAAP. Reconciliations of the Company’s
non-GAAP measures are included below.
The following represents a reconciliation of Net Loss to Net
Loss Excluding Foreign Exchange Loss and Net Loss per Share
Excluding Foreign Exchange Loss.
Three Months Ended March
31
2023
2022
(Unaudited) (In 000’s except
share and per share amounts)
Net Loss
$
(27,751
)
$
(21,254
)
Foreign exchange (loss) gain
(6,813
)
(4,394
)
Net loss excluding foreign
exchange loss
$
(20,938
)
$
(16,860
)
Weighted-average number of
shares
8,608,539
8,608,532
Net loss per share excluding
foreign exchange loss
$
(2.43
)
$
(1.96
)
About PreHevbrio [Hepatitis B Vaccine
(Recombinant)]
PreHevbrio is the only 3-antigen hepatitis B vaccine, comprised
of the three surface antigens of the hepatitis B virus – S, pre-S1,
and pre-S2. It is approved for use in the U.S., European
Union/European Economic Area, United Kingdom, Canada, and Israel.
The brand names for this vaccine are: PreHevbrio™ (US/Canada),
PreHevbri® (EU/EEA/UK), and Sci-B-Vac® (Israel).
Please visit www.PreHevbrio.com for U.S. Important Safety
Information for PreHevbrio [Hepatitis B Vaccine (Recombinant)], or
please see U.S. Full Prescribing Information.
U.S. Indication
PreHevbrio is indicated for prevention of infection caused by
all known subtypes of hepatitis B virus. PreHevbrio is approved for
use in adults 18 years of age and older.
U.S. Important Safety Information (ISI)
Do not administer PreHevbrio to individuals with a history of
severe allergic reaction (e.g. anaphylaxis) after a previous dose
of any hepatitis B vaccine or to any component of PreHevbrio.
Appropriate medical treatment and supervision must be available
to manage possible anaphylactic reactions following administration
of PreHevbrio.
Immunocompromised persons, including those on immunosuppressant
therapy, may have a diminished immune response to PreHevbrio.
PreHevbrio may not prevent hepatitis B infection, which has a
long incubation period, in individuals who have an unrecognized
hepatitis B infection at the time of vaccine administration.
The most common side effects (> 10%) in adults age 18-44,
adults age 45-64, and adults age 65+ were pain and tenderness at
the injection site, myalgia, fatigue, and headache.
There is a pregnancy exposure registry that monitors pregnancy
outcomes in women who received PreHevbrio during pregnancy. Women
who receive PreHevbrio during pregnancy are encouraged to contact
1-888-421-8808 (toll-free).
To report SUSPECTED ADVERSE REACTIONS, contact VBI Vaccines at
1-888-421-8808 (toll-free) or VAERS at 1-800-822-7967 or
www.vaers.hhs.gov.
Please see Full Prescribing Information.
About VBI Vaccines Inc.
VBI Vaccines Inc. (“VBI”) is a biopharmaceutical company driven
by immunology in the pursuit of powerful prevention and treatment
of disease. Through its innovative approach to virus-like particles
(“VLPs”), including a proprietary enveloped VLP (“eVLP”) platform
technology, VBI develops vaccine candidates that mimic the natural
presentation of viruses, designed to elicit the innate power of the
human immune system. VBI is committed to targeting and overcoming
significant infectious diseases, including hepatitis B,
coronaviruses, and cytomegalovirus (CMV), as well as aggressive
cancers including glioblastoma (GBM). VBI is headquartered in
Cambridge, Massachusetts, with research operations in Ottawa,
Canada, and a research and manufacturing site in Rehovot,
Israel.
Website Home: http://www.vbivaccines.com/ News and Resources:
http://www.vbivaccines.com/news-and-resources/ Investors:
http://www.vbivaccines.com/investors/
Cautionary Statement on Forward-looking
Information
Certain statements in this press release that are
forward-looking and not statements of historical fact are
forward-looking statements within the meaning of the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995
and are forward-looking information within the meaning of Canadian
securities laws (collectively, “forward-looking statements”). The
Company cautions that such forward-looking statements involve risks
and uncertainties that may materially affect the Company’s results
of operations. Such forward-looking statements are based on the
beliefs of management as well as assumptions made by and
information currently available to management. Actual results could
differ materially from those contemplated by the forward-looking
statements as a result of certain factors, including but not
limited to, the impact of general economic, industry or political
conditions in the United States or internationally; the impact of
the COVID-19 pandemic and the continuing effects of the COVID-19
pandemic on our clinical studies, manufacturing, business plan, and
the global economy; the ability to successfully manufacture and
commercialize PreHevbrio/PreHevbri; the ability to establish that
potential products are efficacious or safe in preclinical or
clinical trials; the ability to establish or maintain
collaborations on the development of pipeline candidates and the
commercialization of PreHevbrio/PreHevbri; the ability to obtain
appropriate or necessary regulatory approvals to market potential
products; the ability to obtain future funding for developmental
products and working capital and to obtain such funding on
commercially reasonable terms; the Company’s ability to manufacture
product candidates on a commercial scale or in collaborations with
third parties; changes in the size and nature of competitors; the
ability to retain key executives and scientists; and the ability to
secure and enforce legal rights related to the Company’s products.
A discussion of these and other factors, including risks and
uncertainties with respect to the Company, is set forth in the
Company’s filings with the SEC and the Canadian securities
authorities, including its Annual Report on Form 10-K filed with
the SEC on March 13, 2023, and filed with the Canadian security
authorities at sedar.com on March 13, 2023, as may be supplemented
or amended by the Company’s Quarterly Reports on Form 10-Q. Given
these risks, uncertainties and factors, you are cautioned not to
place undue reliance on such forward-looking statements, which are
qualified in their entirety by this cautionary statement. All such
forward-looking statements made herein are based on our current
expectations and we undertake no duty or obligation to update or
revise any forward-looking statements for any reason, except as
required by law.
VBI Vaccines Inc. and
Subsidiaries
Selected Condensed
Consolidated Balance Sheet
(In Thousands)
March 31, 2023
December 31, 2022
(Unaudited)
Assets
Cash
$
40,392
$
62,629
Accounts receivable, net
281
94
Inventory, net
6,768
6,599
Prepaid expenses and other
current assets
4,395
8,368
Total current assets
51,836
77,690
Property and equipment, net
11,690
12,253
Intangible assets, net
58,500
58,345
Goodwill
2,132
2,127
Other non-current assets
4,303
4,671
Total Assets
$
128,461
$
155,086
Liabilities and stockholders’
equity
Accounts payable
$
9,837
$
12,973
Other current liabilities
19,736
23,969
Total current liabilities
29,573
36,942
Total non-current liabilities
53,866
53,981
Total liabilities
83,439
90,923
Total stockholders' equity
45,022
64,163
Total liabilities and
stockholders' equity
$
128,461
$
155,086
VBI Vaccines Inc. and
Subsidiaries
Condensed Consolidated
Statement of Operations and Comprehensive Loss
(In Thousands Except Share and
Per Share Amounts)
Three Months Ended March
31
2023
2022
(Unaudited)
Revenues, net
$
485
$
126
Operating expenses
Cost of revenue
3,559
2,754
Research and development
3,151
2,362
Sales, general, and
administrative
13,284
10,930
Total operating expenses
19,994
16,046
Loss from operations
(19,509
)
(15,920
)
Interest income (expense),
net
(1,429
)
(940
)
Foreign exchange gain (loss)
(6,813
)
(4,394
)
Loss before income taxes
(27,751
)
(21,254
)
Income tax benefit
-
-
Net Loss
$
(27,751
)
$
(21,254
)
Basic and diluted net loss per
share
$
(3.22
)
$
(2.47
)
Weighted-average number of shares
used to compute basic and diluted net loss per share
8,608,539
8,608,532
Other comprehensive income (loss)
- currency translation adjustments
6,599
5,103
Comprehensive Loss
$
(21,152
)
$
(16,151
)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230515005242/en/
VBI Contact Nicole Anderson Director, Corporate
Communications & IR Phone: (617) 830-3031 x124 Email:
IR@vbivaccines.com
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