Brisbane-based biotech Vaxxas, developer of a needle-free vaccine delivery system, has secured an $89.2 million cash injection comprising debt and equity in one of the largest financing rounds for a private biotech company in Australia this year.
The funding comprises $49.22 million in Series D capital and $40 million in debt facilities, with the company revealing that it also has “additional commitments under discussion”.
The funding round has been accompanied by the announcement that CEO David Hoey, who has led Vaxxas for 14 years, plans to step down from his position and that chair Paul Kelly has been replaced by fellow OneVentures representative Sarah Meibusch.
The equity financing was led by SPRIM Global Investments, the venture arm of global life sciences firm SPRIM, with participation from new investor LGT Crestone as well as existing investors OneVentures and Brandon Capital-Hostplus.
Vaxxas says the funding will help accelerate the development and scale-up of its HD-MAP (high-density microarray patch) technology's market readiness, including installation of semi-automated manufacturing lines and later-stage clinical trial programs.
The Vaxxas technology is considered a major advancement for vaccine delivery as needle-free administration reduces temperature control requirements for vaccine storage and creates opportunities for self-administration at home, which the company says could dramatically improve vaccine access and uptake worldwide.
Meibusch, a partner in Vaxxas’ major investor OneVentures, says the capital raising has been achieved in a “very difficult market" for the biotech sector.
“This result underscores the confidence that leading investors have in Vaxxas’ disruptive technology and the progress the team has made toward scaling-up and commercialisation,” says Meibusch.
“Coupled with our sharp focus on commercialisation, this funding provides Vaxxas with a runway into the second half of 2027 as we focus on bringing our technology to market.”
Earlier this year, Vaxxas secured $3.2 million from the United States Biomedical Advanced Research and Development Authority (BARDA) to accelerate the advancement of its technology to administer a COVID-19 mRNA vaccine.
The company is also being supported by a US Government contract worth US$28.5 million ($43 million) to conduct a bird flu vaccine trial in Queensland and Victoria in the largest Phase 1 clinical study to date for the Brisbane-based biotech.
In addition to the latest Series D equity, Vaxxas has entered into a US$25.2 million ($40 million) debt facility with SPRIM Global Investments, which the company can draw down based on eligible R&D activity under the Australian Government’s R&D tax rebate scheme.
“SPRIM is proud to lead this financing and support Vaxxas at this exciting juncture,” says Michael Shleifer, co-founder and managing partner of SPRIM Global Investments.
“We believe the HD-MAP platform has the potential to fundamentally transform vaccine delivery globally – expanding access, reducing costs, and improving uptake.
“The commercial opportunity is enormous, and we look forward to partnering with the team as they advance toward market.”
Meanwhile, Vaxxas is undertaking a global search for a CEO to replace Hoey who will remain with the company as strategic advisor after vacating the role.
“I am incredibly proud of what we have achieved to bring the company and its technology to this point in its growth,” says Hoey.
“We have successfully validated the revolutionary potential of this vaccination delivery platform for a spectrum of diseases in global markets and have strong traction in product and market development.
“I look forward to continuing to be a part of the Vaxxas journey, supporting the executive team and board as they drive forward.”
Under Hoey’s leadership, Vaxxas has established strategic relationships with global leaders in vaccination and raised more than $300 million to support the programs, of which almost $160 million has been injected into the Australian economy, including more than $140 million in Queensland.
“We are deeply grateful to David for his tireless work to get Vaxxas to this stage,” says Meibusch.
“David and the Vaxxas team have grown the company from a spinout from The University of Queensland into a company with strong technical and operational capabilities and established a world-class development and manufacturing facility.
“This transition reflects the company’s evolution from a high-potential startup to a commercially focused biotech scaling for global impact.
“David’s continued involvement as advisor and committed shareholder will help ensure a smooth transition and continuity.”
Following Meibusch’s appointment, former chair Paul Kelly, who has been on the board since Vaxxas was founded in 2011, has retired from the company’s board.
Meibusch has been closely involved with Vaxxas for several years and has been an alternate director since 2020.
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