Financial Performance - For the year ended December 31, 2023, the company generated a net loss of $73.4 million, with accumulated deficits reaching $209.0 million as of June 30, 2024[87]. - License revenue for the three months ended June 30, 2024 was $0, a decrease of $334,000 compared to $334,000 in the same period of 2023[121]. - For the six months ended June 30, 2024, the company reported a net loss of $32.5 million, an improvement of $9.6 million compared to a net loss of $42.0 million for the same period in 2023[130]. - The company expects to continue incurring significant losses and negative cash flows from operations for the foreseeable future, with an accumulated deficit of $209.0 million as of June 30, 2024[150]. Research and Development - The company has prioritized two key product candidates: VTP-300 for chronic hepatitis B in Phase 2 and VTP-1000 for celiac disease in preclinical stage[82]. - Interim data from the Phase 2b trial of VTP-300 showed nearly 20% of participants had undetectable HBsAg, with 76% eligible for NUC discontinuation[96]. - Research and development expenses are expected to increase as the company advances its product candidates through clinical development[105]. - The company has partnerships to advance three additional product candidates, including VTP-500 for MERS and VTP-400 for Zoster[84]. - Research and development expenses totaled $11.7 million for the three months ended June 30, 2024, compared to $13.5 million in 2023, reflecting a decrease of $1.9 million[122]. - Direct research and development expenses decreased to $6.4 million in Q2 2024 from $9.6 million in Q2 2023, a decline of $3.2 million[123]. - Research and development expenses for the six months ended June 30, 2024, were $22.8 million, slightly down from $23.4 million in 2023, a decrease of $0.6 million[131]. - Direct research and development expenses decreased to $12.3 million for the six months ended June 30, 2024, from $15.4 million in 2023, a reduction of $3.1 million[132]. - Indirect research and development expenses increased to $10.5 million for the six months ended June 30, 2024, compared to $7.9 million in 2023, an increase of $2.6 million[133]. Operating Expenses - Total operating expenses decreased to $18.9 million for the three months ended June 30, 2024, down from $26.7 million in 2023, a reduction of $7.8 million[121]. - Total operating expenses decreased to $36.0 million for the six months ended June 30, 2024, down from $48.6 million in 2023, reflecting a reduction of $12.6 million[130]. - General and administrative expenses were $7.2 million for the three months ended June 30, 2024, down from $13.1 million in 2023, a decrease of $5.9 million[125]. - General and administrative expenses significantly decreased to $13.2 million for the six months ended June 30, 2024, from $25.3 million in 2023, a reduction of $12.1 million[134]. Cash and Funding - As of June 30, 2024, the company had cash, cash equivalents, and restricted cash totaling $117.8 million[139]. - The company expects to fund its operating expenses and capital expenditure requirements into Q2 2026 with existing cash and equivalents of $117.8 million as of June 30, 2024[155][167]. - The company anticipates that existing cash resources will fund operations into the second quarter of 2026, based on current assumptions[89]. - Future capital requirements may significantly change based on the outcomes of product candidate developments, necessitating additional funds through equity offerings, debt financing, or collaborations[154]. Contingent Liabilities and Risks - The company recognized a contingent consideration liability related to the acquisition of Avidea, with potential additional payments of up to $40.0 million upon achieving certain milestones[120]. - The company faces potential contingent payment obligations upon achieving clinical, regulatory, and commercial milestones, though amounts and timing are uncertain as of June 30, 2024[160]. - A 10% weakening of the US dollar against the pound sterling could materially affect current and projected expenses denominated in pounds[166]. - The company is exposed to foreign currency exchange rate fluctuations, particularly with the euro, pound sterling, Swiss franc, and Australian dollar[164]. Strategic Plans - The company plans to pursue clinical and preclinical development of current product candidates and advance additional candidates into development[153]. - The company aims to establish manufacturing capabilities and scale-up production to support clinical trials and commercialization efforts[153]. - The company may need to relinquish rights to technologies or revenue streams if additional funds are raised through collaborations or licensing arrangements[156]. Accounting and Compliance - The company is classified as an emerging growth company, allowing it to delay the adoption of certain accounting standards[161][162]. - From April 2023, the SME cash rebate was reduced from an effective rate of 33.4% to 18.6%, impacting future claims for research and development tax credits[113]. Other Income - Other operating income was $0.6 million for the three months ended June 30, 2024, compared to nil in the same period of 2023, resulting from funding provided by CEPI[126]. - The company reported other operating income of $0.8 million for the six months ended June 30, 2024, compared to nil in 2023, due to funding from CEPI[135]. Interest Income - Interest income increased to $0.6 million for the three months ended June 30, 2024, compared to $0.5 million in 2023, an increase of $0.1 million[127].
VACCITECH(VACC) - 2024 Q2 - Quarterly Report