Needle-free vaccination delivery scaleup Vaxxas has raised $49.2 million in a Series D, but cut 10% of its workforce, including a clear out of its executives.
The University of Queensland spin out has moved founding CEO David Hoey, who’s been on leave for the past three months, into a strategic adviser role after 13 years at the helm, and made CFO Doug Cubbin redundant amid the loss of around 15 staff.
The $49m Series D, at a $805 million valuation, is believed to have fallen short of the Brisbane biotech’s ambitions, and has been topped up with a $40 million debt facility, while additional commitments are under discussion for further investment.
The raise was led by SPRIM Global Investments, the venture arm of global life sciences firm SPRIM, supported by new investor LGT Crestone as well as existing backers OneVentures and Brandon Capital-Hostplus.
New Vaxxas chair Sarah Meibusch from OneVentures, who replaced retired director and colleague Paul Kelly, who led the board since Vaxxas was founded in 2011, lauded the raise in what she described as a very difficult market for biotech.
“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,” she said.
“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.”
The funding will see Vaxxas accelerate the development of its HD-MAP technology for market readiness, including installation of semi-automated manufacturing lines and later-stage clinical trial programs.
HD-MAP enables needle-free administration that reduces temperature control requirements for vaccine storage and creates the possibility of self-administration in the home.
SPRIM Global Investments cofounder Michael Shleifer said the Vaxxas technology has “enormous” commercial opportunity.
“We believe the HD-MAP platform has the potential to fundamentally transform vaccine delivery globally – expanding access, reducing costs, and improving uptake,” he said.
The debt facility with SPRIM Global Investments will be called on based on eligible R&D activity under the Australian Government’s R&D tax rebate scheme.
Meibusch said the global search for a new CEO is well advanced and praised Hoey’s tenure since 2012
“We are deeply grateful to David for his tireless work to get Vaxxas to this stage. 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,” she said.
“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.”
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