VivoSim Labs, Inc.

VivoSim Labs has regained compliance with Nasdaq's minimum stockholders' equity rule. The company received notice on August 4, 2026, that it now meets the $2.5 million requirement under Listing Rule 5550(b)(1). The turnaround follows a $5.0 million milestone payment from Eli Lilly and Company, the release of $1.0 million from escrow on July 22, 2026, and a financing on July 17, 2026, that brought in $4.0 million in gross proceeds. As of August 3, 2026, VivoSim's cash on hand was approximately $10.1 million, and it reiterated guidance for over 500% revenue growth in fiscal year 2027.

VivoSim has secured its first commercial sales in mainland China through two paid customer engagements for its NAMkind toxicology and efficacy testing platform. The contracts, obtained via local distributor Tekon, involve a Shanghai-based oncology biotechnology company and a pharmaceutical company headquartered in Chengdu, covering gastrointestinal toxicology screening and efficacy profiling for drug candidates. Management stated that these two engagements represent a meaningful portion of the company's contracted revenue to date and establish a commercial presence in the Chinese market, which it estimates as an approximately $2 billion addressable market for liver and gastrointestinal in vitro models and toxicology services growing at around 10% annually. The company highlighted increasing regulatory acceptance of non-animal testing approaches as a potential driver for wider adoption of its human tissue-based models.

Three biotech companies delivered distinct catalysts. NeOnc Technologies received FDA feedback on its CMC program for lead candidate NEO212, canceling a planned meeting after deeming the written responses sufficient, and expects topline Phase 2a data for NEO100 by the end of July. Ernexa Therapeutics reported independently validated preclinical results for ERNA-101, showing 67% complete tumor clearance in an ovarian cancer model when combined with anti-PD-1 therapy, ahead of a planned IND submission in the third quarter of 2026. VivoSim Labs received a $5 million milestone payment from Eli Lilly after the first patient was dosed in a Phase 2 study of a divested IBD program, and issued guidance projecting more than 500% revenue growth in Fiscal Year 2027 driven by adoption of its NAMs human tissue testing platform.

VivoSim Labs has received a $5 million milestone payment from Eli Lilly and provided guidance that it expects revenue growth of more than 500% in fiscal year 2027. The payment was triggered by the dosing of the first patient in a Phase 2 study of a drug that VivoSim previously sold outright to Eli Lilly as part of a former inflammatory bowel disease program. VivoSim remains eligible for up to $45 million in additional milestone payments tied to future regulatory and commercial achievements. The company attributed its anticipated revenue surge to growing demand for its contract research services using next-generation New Approach Methodologies, or NAMs, 3D human cellular models, which have demonstrated predictive accuracy above 90% in liver and intestine toxicity testing.