ATLANTA - Virios Therapeutics, Inc. (NASDAQ:VIRI), a biotechnology company engaged in developing antiviral therapies, has announced upcoming corporate actions and progress in its drug development programs. The company is set to hold a special shareholder meeting on March 1, 2024, to seek approval for a potential reverse stock split within the next 12 months. This move is aimed at providing strategic flexibility for future transactions and fundraising but does not guarantee the execution of a reverse stock split.
In a display of commitment to reducing operational expenses, Virios has instituted a 10% salary reduction for its management team in exchange for future stock options. Similarly, the company's directors have agreed to a 10% cut in cash fees. These measures underscore the team's dedication to aligning with shareholder interests and focusing resources on research that could create value.
The company has also updated shareholders on the development of its lead candidates, IMC-2 and IMC-1, targeting Long-COVID (LC) and fibromyalgia (FM) respectively. Virios has received guidance from the FDA on advancing IMC-2 into Phase 2 trials for LC, with top-line results from an ongoing independent study expected in the second half of 2024. The urgency of this development is underscored by reports indicating at least 16 million Americans suffer from LC, with up to 4 million debilitated by it, and no FDA-approved treatments currently available.
For its fibromyalgia program, Virios has reached alignment with the FDA on the Phase 3 development program for IMC-1. The company is actively engaging with potential partners for this program, which combines famciclovir and celecoxib.
The information in this article is based on a press release.
InvestingPro Insights
As Virios Therapeutics, Inc. (NASDAQ:VIRI) navigates through its critical phases of drug development and corporate restructuring, the company's financial health and market performance are key areas of interest for investors. With a market capitalization of just 7.3 million USD, Virios presents as a small-cap biotech firm with a specific focus on antiviral therapies. According to InvestingPro data, the company's stock has experienced significant volatility, reflected in a six-month price total return of -64.06%, which aligns with the InvestingPro Tip that Virios' stock price movements are quite volatile.
The company's balance sheet shows a strategic position with more cash than debt, providing some financial stability in the short term. This is a crucial factor for investors, especially considering the InvestingPro Tip that analysts do not expect the company to be profitable this year. Additionally, Virios' liquid assets exceed short-term obligations, which may offer some reassurance to investors concerned about the company's ability to meet its immediate financial commitments.
However, the financial metrics also highlight challenges, with an adjusted P/E ratio for the last twelve months as of Q3 2023 at -1.17, indicating that the company is not generating profits relative to shareholder investments. The lack of profitability over the last twelve months and the decision not to pay dividends, as noted in InvestingPro Tips, may influence investor sentiment, especially for those seeking immediate returns or income from their investments.
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