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VBIV Nasdaq· VBI Vaccines Inc.
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VBIV Nasdaq· VBI Vaccines Inc.
Earnings report Q3 2023

VBI Vaccines Inc. Reports Significant Revenue Growth in Latest Quarter

Segments of revenue

VBI Vaccines Inc. reported net revenues of $6.62 million for the three months ended September 30, 2023, compared to $0.32 million for the same period in 2022. This represents a substantial increase of $6.31 million or 1990%. The increase in revenue was primarily driven by growth in product revenue, license revenue, and R&D services revenue associated with the Brii Collaboration Agreements. Product revenue increased due to the successful launch of PreHevbrio in the U.S. in the first quarter of 2022 and the sale of PreHevbri to their European partner Valneva following the launch in the UK, the Netherlands, and Belgium in the second quarter of 2023. However, sales in the Israeli market experienced a slight decline. R&D service revenue increased due to the recognition of performance obligations related to the Brii Collaboration and License Agreement.

Strengths

VBI Vaccines Inc. demonstrated impressive revenue growth in the latest quarter, driven by successful product launches and collaborations. The launch of PreHevbrio in the U.S. and subsequent sales to their European partner contributed to the significant increase in product revenue. The Brii Collaboration Agreements also played a crucial role in boosting license revenue and R&D services revenue. Management's strategic focus on expanding their market presence and forming collaborations has proven to be successful in generating revenue growth.

Challenges

Despite the overall positive revenue growth, VBI Vaccines Inc. faced challenges in the Israeli market, where sales experienced a slight decline. This decline may require further analysis and strategic adjustments to regain market share in Israel. Additionally, the company continues to incur significant net losses and negative operating cash flows, which may pose challenges in sustaining their operations and financing their ongoing clinical, regulatory, R&D, commercial, and manufacturing activities.

Noteworthy

It is worth noting that VBI Vaccines Inc. has an accumulated deficit of approximately $582.43 million as of September 30, 2023. The company's ability to maintain its operating status and realize its investment in its In Process Research & Development assets is dependent on obtaining adequate financing for its various activities.

Summary

VBI Vaccines Inc. delivered a strong performance in the latest quarter, with a remarkable increase in net revenues driven by successful product launches and collaborations. The launch of PreHevbrio in the U.S. and subsequent sales to their European partner, along with the Brii Collaboration Agreements, significantly contributed to revenue growth. However, challenges in the Israeli market and the company's ongoing net losses and negative cash flows pose potential obstacles. Overall, VBI Vaccines Inc. has demonstrated its ability to generate revenue growth through strategic initiatives, but careful attention should be given to address the challenges and ensure sustainable financial performance.

Source documents

Form 10-Q  filed on Nov 14, 2023
259 pages scanned

Reference data

Company financials Q3 revenue 853k
Analyst estimates Q3 EPS missed by NaN%
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