Virpax Pharmaceuticals, Inc. (VRPX): Business Model Canvas [Dec-2025 Updated]

You're looking past the stock ticker to see how Virpax Pharmaceuticals, Inc. actually intends to make money, and honestly, it's a classic pre-revenue biotech play, which means the structure is everything. As an analyst who's seen this movie before, I focus on two things: their lifeline and their payoff. The lifeline is their ability to secure non-dilutive funding, like grants from the DOD, to cover the high costs of advancing candidates like Probudur and managing past litigation. The payoff hinges entirely on their Key Partnerships-specifically, getting those sub-licensing deals done to unlock future milestone payments and royalties from their novel, non-addictive pain and drug delivery platforms. This canvas breaks down that entire high-stakes dependency map for you, showing exactly how they plan to move from near-zero reported revenue to commercial success.

Virpax Pharmaceuticals, Inc. (VRPX) - Canvas Business Model: Key Partnerships

You're looking at the core external relationships that help Virpax Pharmaceuticals, Inc. move its pipeline forward, especially given the capital-intensive nature of drug development. These partnerships are central to their non-dilutive funding strategy, which is critical when you see financial metrics like a negative free cash flow of $16.85 million in the last twelve months.

Cooperative Research and Development Agreements (CRADAs) with the NIH and DOD

Virpax Pharmaceuticals, Inc. relies heavily on government and academic collaborations to advance its prescription drug candidates. They have competitive CRADAs for two of their prescription drug candidates with the National Institutes of Health (NIH) and one with the Department of Defense (DOD). These agreements are a key part of their stated non-dilutive funding approach.

Here's a breakdown of the key government and academic research collaborations:

The NIH/NCATS collaboration specifically supports the development and manufacturing of Envelta™, including Good Manufacturing Practices (GMP) production and Good Laboratory Practices (GLP) toxicology studies for that product, which is an intranasal molecular envelope enkephalin formulation for acute and chronic pain.

Strategic partnership pursuit for sub-licensing and co-development deals

To help fund ongoing development, Virpax Pharmaceuticals, Inc. is actively working with its banking advisors to seek external commercialization partners. This is a standard move for a company at this stage; honestly, it's necessary when you're burning cash.

The pursuit focuses on:

• Pursuing sub-licensing opportunities for pipeline assets.
• Exploring joint ventures with global strategic partners.
• Seeking co-development opportunities for their drug candidates.
• Looking for additional government and military grants and CRADA awards.

The company also seeks University partnerships. They recently closed a $6.0 million public offering in January 2025, partly to fund development activities like commencing the clinical trial for Probudur™.

Research collaboration with the U.S. Army Institute of Surgical Research (USAISR)

The CRADA with the USAISR, the DOD's primary laboratory for trauma solutions, is focused on Probudur™, an injectable long-acting liposomal bupivacaine formulation designed to reduce or eliminate the need for opioids post-surgery. In pre-clinical trials, Probudur™ demonstrated long duration pain control for at least 96 hours. In February 2025, Virpax Pharmaceuticals, Inc. reported positive results from a comprehensive study conducted in partnership with USAISR using a rat model of incisional pain, which is consistent with prior observations.

Agreements with contract research organizations (CROs) like Altasciences for trials

While a specific, current agreement with Altasciences isn't detailed in the latest filings, the expectation of moving into clinical stages necessitates CRO engagement. Virpax Pharmaceuticals, Inc. stated in July 2024 that it expected to begin first-in-human trials in 2025. The company secured a $2.5 million secured loan financing in July 2024, which, along with an agreement to negotiate additional funding, was intended to help fund programs moving forward. You should note that as of February 2025, the company had a current ratio of only 0.13, which definitely signals tight liquidity management for funding these external trial costs.

Licensing agreements with technology developers like Yissum and Lipocure

The foundation of two key product candidates rests on licensed intellectual property. Virpax Pharmaceuticals, Inc. signed a technology license agreement with LipoCure in March 2018 to use its liposome drug delivery technology, which forms the basis for Probudur™. This agreement includes a sub-license under the Yissum Research Development Company of the Hebrew University of Jerusalem License Agreement. The agreement with LipoCure grants Virpax Pharmaceuticals, Inc. a sole and exclusive, royalty-bearing license to commercialize Licensed Products. The initial agreement with LipoCure stipulated that if Virpax Pharmaceuticals, Inc. did not initiate a clinical trial for the Licensed Product within three years of the Effective Date (March 19, 2018), LipoCure could notify Virpax Pharmaceuticals, Inc. of a failure of diligence, allowing a 180-day cure period.

Virpax Pharmaceuticals, Inc. (VRPX) - Canvas Business Model: Key Activities

The core of Virpax Pharmaceuticals, Inc. (VRPX) operations centers on advancing its platform technologies through rigorous development and strategic funding maneuvers. You see the company dedicating significant effort to pushing its lead candidates through regulatory pathways, which is the primary activity.

Advancing Lead Product Candidates, Especially Probudur (Post-Operative Pain), Toward IND Filing

The focus here is getting Probudur™, the single injection liposomal bupivacaine formulation for post-operative pain, ready for an Investigational New Drug (IND) application. As of March 18, 2025, Virpax Pharmaceuticals announced receiving positive results from the Dose Range Study for Probudur, signaling movement toward the next steps in the IND process. The company previously indicated that completed IND-enabling studies allowed for a direct transition to Phase II patient studies, pursuing a 505(b)(2) accelerated New Drug Application (NDA) pathway. The $6.0 million public offering closed in January 2025 was specifically earmarked, in part, to fund the ongoing development activities for commencing the clinical trial for Probudur. The goal remains to potentially eliminate the need for opioids for post-operative pain relief.

Conducting Preclinical and Dose-Range Studies for Pipeline Assets

Key activities involve completing the necessary toxicology and efficacy studies to support IND submissions for multiple assets. For Probudur, the positive Dose Range Study results in early 2025 were a major milestone. For Envelta™, the intranasal molecular envelope enkephalin formulation, dose-ranging studies in rats and dogs were completed as of October 2023. Furthermore, the Molecular Envelope Technology (MET) platform saw a human Phase I trial, the SUNLIGHT trial, involving MET eye drops, which completed dosing in January 2025. The company is also developing NobrXiol™, a MET-based cannabidiol formulation for epilepsy, which had received pre-Investigational New Drug (PIND) application guidance from the FDA.

Securing Non-Dilutive Funding Through Government and Military Grants

Virpax Pharmaceuticals actively pursues non-dilutive capital, which is crucial for a preclinical-stage company. This activity is a core competency, as the company has a history of identifying, applying for, and winning government grants. Specifically, the development of Envelta is supported under an in-kind grant from the National Center for Advancing Translational Sciences (NCATS), part of the National Institutes of Health (NIH). Probudur development is being conducted in collaboration with the US Army Institute of Surgical Research (USAISR) under a Cooperative Research and Development Agreement (CRADA). The company also has a CRADA with the National Institute of Neurological Disorders and Stroke (NINDS) for NobrXiol.

Managing Significant Corporate Litigation and Settlement Payments

A significant activity has been resolving past legal matters to free up resources for R&D. Virpax Pharmaceuticals entered into a term sheet to settle litigation with Sorrento Therapeutics, Inc. and Scilex Pharmaceuticals, Inc. The total agreed-upon cash settlement was $6.0 million, structured as $3.5 million by March 1, 2024, and $2.5 million by July 1, 2024. In July 2024, the company closed a $2.5 million secured loan financing which enabled the final payment of this litigation settlement. This agreement also mandates future royalty payments of 6% of annual net sales for any commercialized Epoladerm™, Probudur™, or Envelta™ products.

Research and Development of Proprietary Drug Delivery Platforms (MET, Liposomal)

The entire pipeline is built upon two patented drug delivery platforms. The Liposomal Encapsulation Technology is used for Probudur. The Molecular Envelope Technology (MET), licensed from Nanomerics, Ltd., is used for Envelta™ and NobrXiol™. Research activities include optimizing these platforms for nose-to-brain delivery to bypass the blood-brain barrier, which was demonstrated in IND-enabling studies for Envelta. The company is also exploring using MET to develop an intranasal COVID vaccine, announced in March 2025.

Here's a quick look at some key operational and financial metrics known as of early to mid-2025:

The ongoing R&D activities require capital, and the company's financial structure reflects this need for external funding to progress its pipeline.

• Advancing Probudur toward IND filing.
• Conducting preclinical studies for pipeline assets.
• Securing non-dilutive funding via government and military CRADAs.
• Managing obligations from the $6.0 million litigation settlement.
• Researching MET for new indications, like an intranasal COVID vaccine.

If onboarding takes 14+ days, churn risk rises, but for Virpax Pharmaceuticals, Inc., the immediate risk is successfully translating positive preclinical/dose-range data into an accepted IND filing. Finance: draft 13-week cash view by Friday.

Virpax Pharmaceuticals, Inc. (VRPX) - Canvas Business Model: Key Resources

You're looking at the core assets Virpax Pharmaceuticals, Inc. (VRPX) relies on to execute its strategy, which is centered on proprietary drug delivery. Honestly, for a preclinical-stage company, these resources are everything; they are the foundation for any future value creation.

The most tangible, immediate resource is the capital base. As of the latest reported balance sheet data available, the company held approximately $1.51 million in Cash & Cash Equivalents, resulting in a Net Cash position of $1.51 million, or $1.22 per share. This was immediately followed by a significant capital raise in early 2025; the company closed a public offering on January 30, 2025, securing $6.0 million in gross proceeds. That financing was earmarked specifically to fund ongoing development activities, particularly for commencing the clinical trial for Probudur, plus working capital.

The true engine, however, is the technology. Virpax Pharmaceuticals, Inc. possesses two key proprietary drug delivery platforms:

• Liposomal Encapsulation: This technology is central to the development of Probudur.
• Molecular Envelope Technology (MET): This platform underpins assets like Envelta and NobrXiol. The developer of MET received the UK King's Award for Enterprise for innovation.

These platforms protect the novel drug formulations, which is the core of their Intellectual Property (IP) asset. This IP is what allows them to pursue non-opioid and non-addictive treatments for pain and central nervous system disorders.

You can see the pipeline assets that these resources support in the table below. These candidates represent the primary focus of the R&D spend, which rose to $1.61 million in Q1 2024, primarily due to Probudur preclinical activities.

Furthermore, access to specialized research infrastructure acts as a force multiplier for a company with limited internal resources. Virpax Pharmaceuticals, Inc. leverages Cooperative Research and Development Agreements (CRADAs) to gain access to government research facilities and expertise. For instance, preclinical data from the USAISR pilot study provided validation for Probudur, supporting the path toward an Investigational New Drug (IND) submission. That kind of external validation is a critical, non-financial resource.

To be defintely clear on the market perception of the current asset base, the stock price as of December 2025 traded at $0.0210, reflecting a significant decline from earlier in the year. The company executed a 1-for-25 reverse stock split in March 2025.

Finance: draft 13-week cash view by Friday.

Virpax Pharmaceuticals, Inc. (VRPX) - Canvas Business Model: Value Propositions

Virpax Pharmaceuticals, Inc. is focused on developing non-addictive pharmaceutical product candidates for pain management, post-traumatic stress disorder, central nervous system (CNS) disorders, and anti-viral barrier indications. As of December 2025, the company's market capitalization stood at approximately $26,000, with 1.24 million shares outstanding, which reflects a year-over-year change of +263.24% in shares outstanding.

The core value proposition centers on creating alternatives to opioids for pain control, a significant market need. The company's FY 2024 revenue was reported as null.

Probudur, the long-acting liposomal bupivacaine formulation for post-operative pain, is positioned to offer extended relief following a single injection at the wound site. Preclinical data supports a significant duration advantage over existing treatments.

Envelta leverages the intranasal Molecular Envelope Technology (MET) platform to deliver an enkephalin formulation, aiming for rapid, non-invasive delivery to the brain to promptly suppress pain by binding to delta opioid receptors. This development is supported by a Cooperative Research and Development Agreement (CRADA) with the National Center for Advancing Translational Sciences (NCATS), an institute of the NIH.

The underlying Molecular Envelope Technology (MET) itself offers a value proposition for targeted drug delivery, aiming to improve bioavailability and patient compliance across the pipeline. A Phase I human study, the SUNLIGHT trial, involving MET eye drops showed no moderate to severe adverse events over 28 days of twice-daily administration in healthy volunteers.

For rare pediatric diseases, NobrXiol is being developed to provide nasal delivery of pharmaceutical-grade cannabidiol (CBD). This candidate has received pre-Investigational New Drug (PIND) application guidance from the U.S. Food and Drug Administration (FDA).

• Non-addictive pain management alternatives.
• Probudur: Sustained post-operative analgesia.
• Envelta: Intranasal delivery to the brain.
• NobrXiol: CBD delivery for rare pediatric epilepsy.
• MET platform: Protects drug, targets brain via nose.

The company's estimated litigation liability, which represents a potential cash use catalyst, was raised to $5.0 million.

Virpax Pharmaceuticals, Inc. (VRPX) - Canvas Business Model: Customer Relationships

You're hiring before product-market fit, so your relationships are almost entirely focused on funding, validation, and de-risking the science, not on broad commercial sales yet. Here's the quick math on how Virpax Pharmaceuticals, Inc. (VRPX) structures its key external interactions as of late 2025.

High-touch, collaborative relationships with government and academic partners

Virpax Pharmaceuticals, Inc. relies heavily on high-touch, collaborative relationships with government and academic entities to advance its preclinical-stage product candidates, primarily through non-dilutive funding mechanisms. These relationships serve as critical validation points for the proprietary drug delivery platforms, Molecular Envelope Technology (MET) and Probudur encapsulation.

The company maintains competitive Cooperative Research and Development Agreements (CRADAs) and grant funding, which is a core part of its non-dilutive funding strategy. You can see the history of these key government engagements:

These collaborations are essential because they provide funding and scientific input while the company works toward filing Investigational New Drug (IND) applications for candidates like NES100. Still, the focus remains on securing the next grant or partnership to keep the pipeline moving without excessive equity dilution.

Transactional, B2B focus on licensing and co-development partners

The B2B relationship structure is centered on transactional agreements aimed at maximizing the value of the technology platforms through external commercialization. Virpax Pharmaceuticals, Inc. works with banking advisors to actively pursue sub-licensing, joint ventures, and co-development opportunities with reputable global strategic partners.

This focus is a direct response to the company's preclinical stage and need for capital, as evidenced by the stated intent to use proceeds from a January 2025 offering to fund development and pursue these non-dilutive funding strategies. The relationship is transactional in nature, seeking defined milestones or upfront payments in exchange for rights to the technology in specific territories or indications.

• Pursue sub-licensing options.
• Evaluate joint venture structures.
• Seek co-development agreements globally.
• Focus on maximizing efficacy through platforms.

Investor relations (IR) via press releases and SEC filings to maintain public trust

Maintaining public trust is paramount, especially given the capital-raising activities necessary for a preclinical-stage company. Investor Relations (IR) communication is formal, relying on press releases and mandatory SEC filings to keep the financial community informed of progress and funding status. The company announced the closing of a $6.0 million public offering of common stock and pre-funded warrants in January 2025, priced at $0.20 per share/warrant.

Key financial metrics reported as of the end of fiscal year 2024 show the financial reality you are managing:

As of November 28, 2025, the stock was trading at $0.02. The company also announced a reverse stock split in March 2025. These disclosures are the primary touchpoints for the investment community.

Future direct sales and marketing to healthcare providers (HCPs) post-approval

Direct engagement with Healthcare Providers (HCPs) via a dedicated sales and marketing force is a future state activity for Virpax Pharmaceuticals, Inc. The company is currently focused on development activities for commencing clinical trials for Probudur, which implies that a commercial sales infrastructure is not yet established.

The proceeds from the January 2025 offering were earmarked for development and 'marketing and advertising services to communicate information about the Company to the financial community', not for building out a physician-facing sales team. The strategy is to seek commercial approval, which would then trigger the need to build out this customer relationship channel.

• Sales force size: Not yet established.
• Target HCPs: Pending FDA approval for Probudur and other candidates.
• Marketing focus: Currently on financial community communication.

Finance: draft 13-week cash view by Friday.

Virpax Pharmaceuticals, Inc. (VRPX) - Canvas Business Model: Channels

You're looking at how Virpax Pharmaceuticals, Inc. gets its value propositions-like Probudur™ and Envelta™-out to the market or secures the necessary backing to advance them. For a preclinical-stage company, the channels are less about mass distribution and more about strategic partnerships and capital access. Here's the breakdown of how Virpax Pharmaceuticals, Inc. channels its efforts as of late 2025.

Direct licensing and co-development deals with pharmaceutical companies

Direct engagement with larger pharma partners is a key exit or funding channel for Virpax Pharmaceuticals, Inc. While specific, large-scale licensing deal payments announced in 2025 aren't public, the company's strategy relies on technology transfer and co-development. The foundation for this channel is the proprietary Molecular Envelope Technology (MET) delivery platform, which was initially licensed from Nanomerics, Ltd.. The company's pipeline candidates, like Probudur™ and Envelta™, are designed to be attractive for such deals.

The company maintains strategic research channels through government agreements, which serve as de facto co-development pathways:

• Cooperative Research and Development Agreement (CRADA) with the National Institutes of Health (NIH).
• CRADA with the Department of Defense (DOD).
• Prior CRADA with the National Center for Advancing Translational Sciences (NCATS) for Envelta™ IND-enabling studies.

Clinical research organizations (CROs) for managing human trials

Managing human trials is outsourced, making CROs a critical channel for advancing product candidates toward regulatory milestones. Although specific contract values or the names of CROs engaged in 2025 are not detailed in recent public filings, the progression of Probudur™ implies active management of clinical activities. The company's stated intent for capital raised in January 2025 included funding the development activities for commencing the clinical trial for Probudur. This execution relies heavily on external CRO expertise to manage the complex logistics of Phase I/pre-clinical trial execution.

Nasdaq Capital Market for public equity financing and capital raises

The Nasdaq Capital Market is the primary channel for raising the necessary capital to fund the preclinical and early clinical development pipeline. This channel is volatile, as evidenced by the need for corporate actions to maintain listing compliance. You see the direct financial impact of this channel in the early part of 2025.

Here's the quick math on the capital raised and the resulting market valuation as of late 2025:

The company also underwent a 1-for-25 reverse stock split in March 2025, a direct action taken to manage the share price within Nasdaq listing rules. Furthermore, the SEC was involved in a review of action taken by NASDAQ in September 2025, indicating ongoing engagement with the exchange's listing requirements.

Regulatory submissions (INDs, NDAs) to the U.S. Food and Drug Administration (FDA)

The FDA is the ultimate gatekeeper channel for commercialization. Virpax Pharmaceuticals, Inc. channels its development efforts directly into formal submissions to gain approval for its product candidates. The focus in 2025 has been on advancing the Investigational New Drug (IND) application process.

Key regulatory channel activities observed:

• Positive results for Probudur™ in a dose range study in March 2025, moving the candidate towards next steps in the IND process.
• Proceeds from the January 2025 offering were earmarked to fund development activities for commencing the clinical trial for Probudur, which precedes an IND filing.

The company is initially seeking FDA approval for two prescription drug candidates using patented delivery platforms. That's the path to market, plain and simple.

Finance: draft 13-week cash view by Friday.

Virpax Pharmaceuticals, Inc. (VRPX) - Canvas Business Model: Customer Segments

You're looking at the customer segments for Virpax Pharmaceuticals, Inc. (VRPX) as of late 2025. Given the company's clinical-stage status-with a market capitalization around $26,093 Thousand USD as of March 21, 2025 and a trailing twelve-month EBITDA of ($11,963) Thousand USD as of December 31, 2024-the focus is heavily weighted toward strategic partners and government entities rather than a broad, established commercial sales force targeting every physician.

The customer base is defined by the therapeutic area and the specific drug candidate being developed. For instance, Probudur™ targets the immediate post-surgical market, while Envelta™ aims at broader acute and chronic pain sufferers.

Here's a breakdown of the key customer segments Virpax Pharmaceuticals, Inc. is addressing:

• Global pharmaceutical and biotech companies seeking non-opioid pain assets.
• Surgeons and hospital systems (for Probudur, post-operative pain).
• Government and military agencies (DOD) for combat casualty care solutions.
• Patients suffering from acute/chronic pain and rare pediatric epilepsy.

The nature of their development work suggests that for now, the most immediate, high-value customer interaction is with government research bodies and potential future commercialization partners, rather than a large network of individual prescribing physicians.

The table below maps these segments against the product focus and any available supporting data points as of late 2025:

For the segment focused on military applications, the collaboration with the USAISR is a concrete step toward securing future government procurement, which often requires specific performance metrics like the long-duration pain control demonstrated by Probudur™.

The patient segment for Envelta™ is defined by the need for non-opioid options for acute and chronic pain, including pain associated with cancer. While the search results confirm the focus on these pain types, specific patient population statistics or market penetration numbers for late 2025 are not publicly detailed, which is typical for a company still advancing toward Investigational New Drug (IND) filings.

The company's internal structure, with only 2 total employees as of March 21, 2025, suggests that direct engagement with the surgeon/hospital system segment for commercial sales is not the current operational focus; that relationship is likely reserved for future partners.

Finance: review the cash runway based on the Q3 2025 filing relative to the planned IND milestones for Probudur.

Virpax Pharmaceuticals, Inc. (VRPX) - Canvas Business Model: Cost Structure

You're looking at the expenses that drive Virpax Pharmaceuticals, Inc. (VRPX) operations as they push their pipeline forward. The cost structure is heavily weighted toward research and development, which is typical for a pre-revenue biotech, but 2024 saw significant, non-recurring costs related to legal matters.

The core operating expenses for the third quarter of 2024 show the baseline burn rate before considering one-time items. Research and Development (R&D) expenses for Q3 2024 were reported at $1,143,396. This figure aligns with the required $1.14 million for the period. General and Administrative (G&A) expenses for that same quarter were $780,958, which is the source for the required $0.78 million figure.

The litigation settlement was a major driver of cash use throughout 2024. Virpax agreed to a total cash payment of $6.0 million to settle the litigation, with payments scheduled for March 1, 2024 ($3.5 million) and July 1, 2024 ($2.5 million). The company later secured financing to pay off the remaining balance of this settlement in July 2024. Cash used in operating activities for the nine months ended September 30, 2024, totaled $13,842,213, an increase from the prior year, which was primarily due to these settlement payments.

The costs associated with clinical trial execution and regulatory filing fees are embedded within the R&D spend. For instance, R&D spending in earlier periods showed a shift in focus toward the lead asset, Probudur™, with specific activities including preclinical work and progress toward an Investigational New Drug (IND) filing. The company's strategy relies on securing non-dilutive funding, such as government grants, to help offset these development costs.

For G&A, the composition of costs in prior periods gives you a good idea of what drives that line item when litigation costs are lower. You can expect ongoing costs here to include compensation for personnel and external support. Here's a look at the components that have previously influenced G&A:

• Higher salaries and wages.
• Board fees.
• Stock-based compensation.
• Professional fees.
• Directors and Officers (D&O) insurance expense.

To give you a clearer picture of the reported costs around the time of the required figures, here is a comparison of the operating expenses for the quarter ended September 30, 2024 (Q3 2024), versus the same period in the prior year, which shows the impact of the settlement:

The significant drop in G&A from Q3 2023 to Q3 2024 is directly tied to the litigation settlement, as G&A in the prior year included higher litigation-related costs and accruals. Honestly, you have to look at the Q3 2023 G&A number to see the cost structure without the major legal overhang. Finance: draft 13-week cash view by Friday.

Virpax Pharmaceuticals, Inc. (VRPX) - Canvas Business Model: Revenue Streams

You're looking at the revenue side of Virpax Pharmaceuticals, Inc. (VRPX) as of late 2025. For a development-stage biopharma company like Virpax Pharmaceuticals, Inc., the revenue profile is entirely forward-looking, built on the successful progression of its pipeline assets.

Currently pre-revenue; reported revenue of $0.00 for FY 2024.

As per the latest available financials, Virpax Pharmaceuticals, Inc. has not yet generated sales from commercial products. The reported revenue for the Fiscal Year ending December 31, 2024, was $0.00. This is typical for a company focused on research and development, where operating losses are expected until a product gains regulatory approval and reaches the market. For instance, the Net Loss for the period ending December 31, 2024, was reported as -$12,067 thousand USD.

The current revenue streams are best understood by looking at the potential sources that could generate cash flow in the near to medium term. Here is a breakdown of the current state and anticipated revenue components:

Future revenue from upfront payments and milestone payments from licensing deals.

A significant driver of non-dilutive cash flow for Virpax Pharmaceuticals, Inc. will come from strategic partnerships. The business model anticipates securing deals for its prescription (Rx) candidates, such as Probudur or NobrXiol. These deals typically involve an initial, immediate cash infusion in the form of an upfront payment. Following that, revenue is recognized upon the achievement of specific, pre-agreed-upon development or regulatory achievements, known as milestone payments. For example, the company has a portfolio of assets that generated high interest at the BIO meeting in San Diego, suggesting external validation that could lead to favorable deal terms.

Future royalties and product sales upon successful commercialization of Rx candidates.

The ultimate goal is product sales, but before that, royalties from partners who commercialize the drugs represent a crucial long-term stream. The existing Amended and Restated Collaboration and License Agreement with Nanomerics Ltd. explicitly outlines the structure for milestone, profit share, and royalty payments payable by Virpax Pharmaceuticals, Inc. to Nanomerics, which suggests a reciprocal structure is expected in out-licensing deals. Successful commercialization of an asset like Probudur, which is being developed for acute and chronic non-cancer pain, would trigger these royalty streams, providing a percentage of the net sales of the product.

Non-dilutive grant funding from government agencies (NIH, DOD).

Virpax Pharmaceuticals, Inc. actively pursues funding that does not require issuing new equity, which is critical for preserving shareholder value. The company maintains competitive Cooperative Research and Development Agreements (CRADAs) with key government bodies. Specifically, these include agreements with the National Institutes of Health (NIH) and the Department of Defense (DOD) for two of its prescription drug candidates. One such collaboration, an extension with the National Center for Advancing Translational Sciences (NCATS), an NIH institute, is focused on the continued development of NES100 for pain management. This type of funding helps offset Research and Development expenses, which totaled $5,819 thousand USD for the year ending December 31, 2024.

Finance: draft 13-week cash view by Friday.