BiondVax Pharmaceuticals

Kurta Law is investigating recommendations of BiondVax Pharmaceuticals (NASDAQ: BVXV or BVXVW). Investors who lost money on BiondVax Pharmaceuticals may have purchased these risky shares as a result of broker misconduct. Shares of BiondVax Pharmaceuticals were high-risk investments in a clinical-stage drug, and investors should have known the extent of the risk before investing. If a broker misrepresented these investments or recommended them to you despite the fact that you had a moderate or conservative risk tolerance, consider getting in touch with a securities attorney today.

Israeli biotech company BiondVax Pharmaceuticals conducted an offering of 1,910,000 American Depository Shares (ADS) and 1,910,000 warrants in 2015. American Depository Shares are equity shares of a non-U.S. company. “Equity” refers to a company’s assets minus its debts. BiondVax Pharmaceuticals is a privately held company that was incorporated in Israel in 2003. It has since changed its name to Scinai Immunotherapeutics. Since the time of the offering, the company pivoted to focus on R&D, and is reported to be early-stage development of an inhaled Covid-19 therapy.

The 2015 BiondVax Pharmaceuticals Offering

In 2015, BiondVax Pharmaceuticals stated it was clinical trials for a “universal influenza vaccine” called M-001. This vaccine would supposedly target both seasonal and pandemic strains of the influenza virus and claimed that M-001 could offer more effective and longer-lasting protection from the flu. The prospectus states that the company believes it could compete with ordinary seasonal flu shots.

Emerging Growth

BiondVax Pharmaceuticals stated that it qualified as an “emerging growth company,” meaning that it has less stringent filing requirements with the SEC. For example, the company is not required to submit information concerning its executive compensation. This lack of transparency increases the risks for investors.

The prospectus stated the BiondVax Pharmaceuticals had not completed clinical trials in the U.S. and Israel. It also did not have sufficient financial resources to conduct Phase 3 clinical trials, and without completed clinical trials, the company’s ability to attract grant funding was in jeopardy.

Risk Factors

There were obvious risks associated with drug companies that are still in the testing stage. For example, the prospectus stated that BiondVax Pharmaceuticals has not completed clinical trials in the U.S. and Israel. It also did not have sufficient financial resources to conduct Phase 3 clinical trials, and without completed clinical trials, the company’s ability to attract grant funding was in jeopardy.

The following are just some examples of other risks outlined in the prospectus:

• BiondVax Pharmaceuticals had a history of operating losses. The prospectus states that the company is not currently profitable and did not expect to become profitable in the near future.
• The company had not yet commercialized any products.
• BiondVax Pharmaceuticals had not received FDA regulatory approval for the conduct of clinical trials in the U.S.
• Regulatory approval was not guaranteed.
• The company faced significant competition.
• Drug companies are subject to costly government regulations, fines, and other penalties.
• As a foreign private issuer, it was not subject to the same requirements imposed on U.S. issuers. It is subject to reporting obligations that are less detailed and less frequent than U.S. reporting companies. Less reporting equals more risks for investors.

Stock Listing

At the time of the offering, BiondVax Pharmaceuticals was trading on the Tel Aviv Stock Exchange for $0.167. As of April 20, 2024, Scinai Immunotherapeutics trades on NASDAQ for $0.45.

BiondVax Pharmaceuticals voluntarily delisted from the Tel Aviv stock exchange in 2017. NASDAQ notified the company that it was no longer in compliance with listing requirements in June 2023 but gave the company an extension to meet the requirements. It regained compliance in November 2023.

Aegis Capital Corp. Underwriting  

Investors should know that Aegis Capital Corp. served as the underwriter for this offering. Underwriters take on risk in exchange for a fee, which could motivate certain investment banks to underwrite investments that pose too much risk for the average retail investor. Additionally, brokers may have conflicts of interest when they recommend shares that are underwritten by an affiliate of their brokerage firm.  

Kurta Law Can Help

If you suffered losses on BiondVax Pharmaceuticals after working with an Aegis broker, consider speaking with our securities attorneys. Our team of lawyers has settled cases against Aegis Capital Corp. and we are happy to provide free case consultations. You do not pay a fee unless we win your case. Contact (877) 600-0098 or info@kurtalawfirm.com.