VBI Vaccines Announces Increased Focus on Hepatitis B, Organizational Changes, and Reverse Stock Split

VBI Vaccines Inc. (Nasdaq: VBIV) (VBI), a biopharmaceutical company driven by immunology in the pursuit of powerful prevention and treatment of disease, today announced plans to focus the Company’s efforts on the fight against hepatitis B (HBV), concentrating on broadening access to VBI’s FDA-approved 3-antigen HBV vaccine for adults, PreHevbrio [Hepatitis B Vaccine (Recombinant)], and advancing its HBV immunotherapeutic candidate, VBI-2601, which has the potential to be part of a functional cure regimen for chronic HBV patients.

Jeff Baxter, VBI’s President and CEO, commented: “The potential impact our HBV programs can have on public health and patients’ lives continues to grow – already this year, with the necessary infrastructure now in place, we’ve seen an encouraging increase of PreHevbrio use in the U.S., and we’ve reported positive interim Phase 2 data from a combination study of our HBV immunotherapeutic and an siRNA candidate. Today’s announcement is part of a focused effort to enable us to achieve our corporate objectives and continue to contribute meaningfully to this fight against hepatitis B. We believe these difficult decisions and actions better position VBI to deliver value to patients, our public health partners, and our investors. These decisions, however, were not taken lightly and I would like to extend my sincere thanks to all employees affected by this restructuring for their steadfast dedication to our mission and for their contributions to VBI’s progress to date.”

About the Organizational Changes

As part of this commitment, the company intends to reduce its internal workforce by 30-35% – a reduction which is expected to begin in April and complete by the end of June 2023. As a result of this and other reductions in spend, VBI also expects its operating expenses from normal business to be 30-35% lower in the second half of 2023 as compared with the second half of 2022.

Additionally, by mutual agreement, Christopher McNulty, VBI’s current Chief Financial Officer, Head of Business Development, and director, will resign from the Company and the Board of Directors effective April 10, 2023. In his place, the Company and its Board of Directors have appointed Nell Beattie, VBI’s current Chief Business Officer, as the new Chief Financial Officer and Head of Corporate Development. Ms. Beattie has also been elected to VBI’s Board.