Summary by Moomoo AI
Virpax Pharmaceuticals, Inc. has entered into a settlement agreement with Sorrento Therapeutics, Inc. and Scilex Pharmaceuticals Inc. to resolve litigation related to drug candidate development. The settlement, reached on February 29, 2024, requires Virpax to pay a total of $6 million, with $3.5 million due shortly after the effective date and the remaining $2.5 million by July 1, 2024. Additionally, Virpax will pay a 6% royalty on annual net sales of certain products. The agreement is subject to approval by the Bankruptcy Court overseeing Sorrento's bankruptcy. In a separate event, Virpax announced a 1-for-10 reverse stock split effective March 1, 2024, to comply with Nasdaq's minimum bid price requirement and make the stock more attractive to investors. The reverse split will reduce outstanding shares from approximately 11.7 million to about 1.2 million. The company's common stock will continue trading under the symbol VRPX with a new CUSIP number.