CAMBRIDGE, Mass. - VBI Vaccines Inc. (NASDAQ:VBIV), a biopharmaceutical company specializing in immunology, has received an initial order from the Ontario Superior Court of Justice for creditor protection under the Companies' Creditors Arrangement Act (CCAA).
This court-approved protection includes a stay of proceedings, authorization for debtor-in-possession financing, and the appointment of Ernst & Young Inc. as the court's monitor during the restructuring process.
The company's decision to file for creditor protection follows a careful review of its financial situation and consultation with legal and financial advisors.
Moreover, VBI plans to initiate a case under Chapter 15 of the U.S. Bankruptcy Code to recognize the Canadian court's orders in the United States, and a case under the Israeli Insolvency and Economic Rehabilitation Law to protect its subsidiaries and assets in Israel.
The company has informed Nasdaq of these proceedings, anticipating that trading of its common shares on the Nasdaq Capital Market will cease on a date determined by Nasdaq, and expects to stop public reporting.
Legal advisement for VBI during these proceedings is provided by Stikeman Elliott LLP, Haynes and Boone, LLP, Morris, Nicols, Arsht & Tunnell LLP, and Pearl Cohen Zedek Latzer Baratz, with Ernst & Young serving as the financial advisor.
Recently, VBI Vaccines Inc. shared promising interim data from a Phase 2b study of their experimental cancer vaccine, VBI-1901. The vaccine, currently being tested on patients with recurrent glioblastoma (rGBM), showed a 43% disease control rate in the VBI-1901 study arm. Notably, seven patients treated with VBI-1901 displayed one partial tumor response and two stable disease observations, marked by a significant reduction in tumor size.
These developments offer a glimpse into the potential of VBI-1901 in treating glioblastoma, an aggressive brain tumor with a poor prognosis. The vaccine leverages the company's enveloped virus-like particle technology to stimulate an immune response against cytomegalovirus antigens prevalent in multiple solid tumors, including GBM.
InvestingPro Insights
In light of VBI Vaccines Inc.'s recent filing for creditor protection, examining the company's financial health through real-time data from InvestingPro provides valuable context. VBI operates with a significant debt burden and has been quickly burning through cash, as per InvestingPro Tips. These challenges are reflected in the company's financial metrics, with a market capitalization of just 15.95 million USD, indicating a relatively small enterprise value amidst its financial difficulties.
Furthermore, VBI's revenue has seen a dramatic increase in the last twelve months as of Q1 2024, with a growth rate of 553.09%. Despite this surge, the company's gross profit margin remains negative at -24.02%, underscoring the operational challenges VBI faces. Additionally, the company's stock price has been quite volatile, suffering from a 15.72% drop over the past month, which may be indicative of investor concerns regarding its financial stability and future prospects.
For those interested in a deeper analysis, there are additional InvestingPro Tips available that shed light on VBI's financial condition and market performance. These include insights into the company's weak gross profit margins, poor free cash flow yield, and the prediction by analysts that the company will be profitable this year. To explore these insights and more, visit https://www.investing.com/pro/VBIV and consider using the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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