VBIV - VBI Vaccines falls 40% on portfolio reorganization reverse stock split

2023-04-04 09:52:16 ET

Shares of VBI Vaccines ( NASDAQ: VBIV ) lost ~40% in the morning hours Tuesday after announcing a reverse stock split and plans to reduce as much as 30-35% of its internal workforce in conjunction with a portfolio reorganization.

"We believe these difficult decisions and actions better position VBI to deliver value to patients, our public health partners, and our investors," Chief Executive Jeff Baxter said.

Accordingly, the company will overhaul its portfolio to focus on its FDA-approved PreHevbrio adult hepatitis B vaccine and the HBV immunotherapeutic candidate, VBI-2601.

VBIV said that layoffs, expected to begin in April and be complete by the end of June 2023, will lead to a 30-35% YoY decline in operating expenses from day-to-day business operations in H2 2023.

Concurrently, the company announced the resignation of Christopher McNulty, its Chief Financial Officer, Head of Business Development, and director, effective April 10, 2023.

VBI's current Chief Business Officer, Nell Beattie, is expected to replace him as the new Chief Financial Officer and Head of Corporate Development.

Meanwhile, VBI ( VBIV ) announced a 1-for-30 reverse stock split to regain compliance with the continued listing requirements of Nasdaq. The company shares are expected to trade on a split-adjusted basis from April 12, 2023.

Wall Street has remained bullish on VBI ( VBIV ) stock, with an average rating of Strong Buy from analysts. In contrast, Seeking Alpha's Quant System, which consistently beats the market, rated VBIV as a Strong Sell.

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