Shares of the BiondVax Pharmaceuticals Ltd. (BVXV) stock were falling in the pre-market trading session today on July 28, 2021, after gaining as much as 26.94% at the previous closing. BVXV stock price saw a downtrend of 3.20% to drop at $3.33 a share as of this writing. Let’s understand the reason behind this fall.

What’s Happening?

BiondVax Pharmaceuticals Ltd. is a biopharmaceutical stock focused on the prevention of infectious diseases via the development of therapies in Israel. There seems to be no major culprit behind the falling BVXV stock price. No specific news or press release has been announced to justify this bearish sentiment. It seems that the profit takers have stepped in after the BVXV stock price rose as much as $4.04 per share in the last trading session.

Financial Results of BVXV stock:

BiondVax stock announced its first-quarter 2021 financial results on June 23, the highlights of which are given below.

• BiondVax recorded  NIS(New Israel Shekels) 6.7 million in total operating expenses in the first three months of 2021 as compared to NIS 20 million in the same quarter of 2020.
• Research and development expenses were NIS 2.75 million for the first quarter of 2021, lower than research and development expenses of NIS 19.0 million in the first quarter of 2020.
• BiondVax generated net proceeds of $12.8 million from the follow on offering on Nasdaq after deducting underwriter discounts and offering related expenses.

The operating expense which also includes research and development expenses of Q1 2021 were lesser as compared to the same period in 2020 due to the phase 3 clinical trial and related operations expenses in 2020. The trial was ended in the fourth quarter of 2020.

Balance Sheet of BVXV stock:

At the end of the first quarter of 2021, BiondVax stock had cash and cash equivalents of NIS 48.6 million, much higher than the NIS 9.4 million at the end of December 2020. This rise is mainly attributed to net proceeds of $12.8 million from the follow on the offering of the stock in February 2021. As of May 12, 2021, the stock reported NIS 46 million cash and cash equivalents.

Wrap Up:

After reaching a certain height in the last trade, BVXV stock is now moving back without any official announcement or activity. The follow on offering that happened in February 2021 has strengthened its balance sheet.