BERWYN, Pa. - Virpax Pharmaceuticals, Inc. (NASDAQ:VRPX), specializing in pain management drug development, has received an extension for its research collaboration with the National Center for Advancing Translational Sciences (NCATS), part of the National Institutes of Health (NIH). The partnership focuses on the advancement of NES100, Virpax's intranasal peptide candidate for treating acute and chronic non-cancer pain.
NES100 utilizes nanotechnology for the delivery of enkephalin, a naturally occurring peptide, into the brain via the nasal route. The Molecular Envelope Technology (MET) aims to facilitate the transport of this peptide to the brain, potentially offering a non-opioid alternative for pain suppression by targeting delta opioid receptors. In preclinical animal models, NES100 has shown to provide analgesia without the typical side effects of opioids such as tolerance, withdrawal, respiratory depression, euphoria, or addiction.
The extension of the collaborative agreement, supported by the NIH Helping to End Addiction Long-term (HEAL) initiative, is expected to bolster Virpax's pre-clinical and clinical development strategies for NES100. "We are excited that this collaboration has been extended...as we believe that it may help Virpax develop an effective and safe alternative to conventional opioids," said Jatinder Dhaliwal, CEO of Virpax Pharmaceuticals.
Virpax is also engaged in developing other pharmaceutical products, including Probudur™, a liposomal bupivacaine for post-operative pain, and Envelta™, an intranasal formulation for managing various pain conditions. Additionally, the company is working on NobrXiol™, a prescription candidate for pediatric epilepsy, and nonprescription products AnQlar and Epoladerm™ for viral replication inhibition and osteoarthritis pain management, respectively.
The press release includes forward-looking statements regarding the company's market prospects, which are subject to risks and uncertainties. Investors are advised to exercise caution and not to place undue reliance on these projections. This news article is based on a press release statement from Virpax Pharmaceuticals.
In other recent news, Virpax Pharmaceuticals has been active with several significant developments. The company has appointed Mr. Usama Chaudhry as its new Chief Financial Officer (CFO) and Katharyn Field as Vice President and principal executive officer, strengthening its executive team. In a strategic move, Virpax has extended an agreement with a key institutional investor for exclusive negotiation rights on subsequent financing deals worth a minimum of $5 million.
The company also managed to repay a $2.525 million senior secured promissory note ahead of schedule, indicating a strong financial position. Additionally, Virpax issued nearly two million new shares of common stock, generating an estimated $2.7 million in proceeds.
Further, Virpax Pharmaceuticals announced a $5 million public offering, managed by Spartan Capital Securities. The offering includes shares of common stock and pre-funded warrants to purchase common stock. The company plans to use the proceeds to fund its investigational new drug (IND) filing for Probudur™, a patented injectable local anesthetic for post-operative pain management, as well as for working capital and general corporate purposes.
However, the company faces potential delisting from Nasdaq due to non-compliance with the minimum stockholders’ equity requirement. Despite receiving an extension to meet the requirement, Virpax Pharmaceuticals was unable to comply by the end of the plan period, leading to Nasdaq's decision to proceed with the delisting.
Lastly, Virpax Pharmaceuticals plans to file an Investigational New Drug Application for its pain management product, Probudur, by the end of the year. These are among the recent developments shaping Virpax Pharmaceuticals' trajectory.
InvestingPro Insights
While Virpax Pharmaceuticals (NASDAQ:VRPX) is making strides in pain management drug development, its financial health presents some challenges. According to InvestingPro data, the company's market capitalization stands at a modest $2.93 million, reflecting its current position as a small-cap pharmaceutical player.
InvestingPro Tips highlight that Virpax is not profitable over the last twelve months, with an adjusted operating income of -$9.37 million. This aligns with the company's focus on research and development, which often requires significant investment before generating revenue. The lack of profitability is further emphasized by the negative P/E ratio of -0.29, indicating that the company is currently operating at a loss.
The stock's performance has been concerning, with InvestingPro data showing a one-year price total return of -90.06% as of the most recent data. This significant decline suggests that investors have been reassessing the company's prospects, possibly in light of its financial challenges and the competitive landscape in pain management drug development.
Despite these financial hurdles, Virpax's extended collaboration with NCATS could be a positive signal for its research pipeline. However, investors should note that the company does not pay a dividend, which is common for early-stage pharmaceutical companies reinvesting in research and development.
For those interested in a deeper analysis, InvestingPro offers 7 additional tips for Virpax Pharmaceuticals, providing a more comprehensive view of the company's financial situation and market position.
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