A Biotech Innovator
|Written by GSCR Staff|
|Tuesday, 16 April 2013 09:22|
Good Morning. Today’s featured stock is Vical, Inc. (NASDAQ – VICL - $3.93). The Company is a biopharmaceutical firm that develops products based on its DNA delivery technologies for the prevention and treatment of serious or life-threatening diseases.
Vical has a strong pipeline headlined by its Melanoma candidate, Allovectin. Allovectin is a DNA based immunotherapy designed to stimulate immunization in tumors. Phase 3 trial results are expected sometime late 2Q13 or early 3Q13. The growth potential in the melanoma market in the U.S. and EU is huge, potentially increasing to $2.5 billion in the next 10 years, which would be 100% from current levels. The Allovectin product alone could provide $500 million in sales for Vical.
Additionally, Vical has received $22.6 million for licensing rights from AnGes MG, Inc. to license the rights in Japan and other Asian countries.
Vical is developing other products that also offer tremendous revenue potential. TransVax is in Phase III trials and is a DNA-based vaccine that is targeted for use by hemtopoietic stem cell transplant recipients. Vical will enter Phase II trials for TransVax for solid organ transplant recipients sometime in the middle of this year. Revenue potential for this product is $125 to $150 million in payments from an existing licensing agreement from Astellas (OTCBB: ALPMF).
Vical also has the ONCEPT product which is actually targeted at treating dogs with oral melanoma and farm raised salmon susceptible to the necrosis virus which has already been approved in the U.S. and Canada. Finally, the Company is developing a vaccine targeted at HIV therapy that is in Phase II trials.
Given the solid development pipeline and upcoming milestones, we believe that VICL could trade well above the $5.00 during 2Q13.
Have a great start to your week!
Disclosure: Goldman Small Cap Research analysts are neither long nor short these shares but may elect to purchase the stock within the next 48 hours.
This Market Monitor blog was prepared for informational purposes only. Goldman Small Cap Research, (a division of Two Triangle Consulting Group, LLC) produces research via two formats: Goldman Select Research, which typically highlights small cap companies, and Goldman Opportunity Research, which features micro cap companies in a sponsored research format. Thus, the Select product reflects the Firm’s internally generated stock ideas while the Opportunity product reflects sponsored research reports.
It is important to note that while we may track performance separately, we utilize the same coverage criteria in determining coverage of all stocks in both research formats. Please view the company’s individual disclosures for each engagement, which can be found in each company-specific report. All information contained in this blog, newsletter and in our reports were provided by the Companies or generated from our own due diligence. Our analysts are responsible only to the public, and are paid in advance to eliminate pecuniary interests, retain editorial control, and ensure independence. Analysts are compensated on a per report basis and not on the basis of his/her recommendations.
The information used and statements of fact made have been obtained from sources considered reliable but we neither guarantee nor represent the completeness or accuracy. Goldman Small Cap Research did not make an independent investigation or inquiry as to the accuracy of any information provided by the Company, or other firms. Goldman Small Cap Research relied solely upon information provided by the Company through its filings, press releases, presentations, and through its own internal due diligence for accuracy and completeness. Such information and the opinions expressed are subject to change without notice. A Goldman Small Cap Research blog, report, note, or newsletter is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed.
This blog does not take into account the investment objectives, financial situation, or particular needs of any particular person. This blog does not provide all information material to an investor’s decision about whether or not to make any investment. Any discussion of risks in this presentation is not a disclosure of all risks or a complete discussion of the risks mentioned. Neither Goldman Small Cap Research, nor its parent, is registered as a securities broker-dealer or an investment adviser with FINRA or with any state securities regulatory authority.
ALL INFORMATION IN THIS BLOG, REPORT OR NEWSLETTER IS PROVIDED “AS IS” WITHOUT WARRANTIES, EXPRESSED OR IMPLIED, OR REPRESENTATIONS OF ANY KIND. TO THE FULLEST EXTENT PERMISSIBLE UNDER APPLICABLE LAW, TWO TRIANGLE CONSULTING GROUP, LLC WILL NOT BE LIABLE FOR THE QUALITY, ACCURACY, COMPLETENESS, RELIABILITY OR TIMELINESS OF THIS INFORMATION, OR FOR ANY DIRECT, INDIRECT, CONSEQUENTIAL, INCIDENTAL, SPECIAL OR PUNITIVE DAMAGES THAT MAY ARISE OUT OF THE USE OF THIS INFORMATION BY YOU OR ANYONE ELSE (INCLUDING, BUT NOT LIMITED TO, LOST PROFITS, LOSS OF OPPORTUNITIES, TRADING LOSSES, AND DAMAGES THAT MAY RESULT FROM ANY INACCURACY OR INCOMPLETENESS OF THIS INFORMATION). TO THE FULLEST EXTENT PERMITTED BY LAW, TWO TRIANGLE CONSULTING GROUP, LLC WILL NOT BE LIABLE TO YOU OR ANYONE ELSE UNDER ANY TORT, CONTRACT, NEGLIGENCE, STRICT LIABILITY, PRODUCTS LIABILITY, OR OTHER THEORY WITH RESPECT TO THIS PRESENTATION OF INFORMATION.
For more information, visit our Disclaimer: www.goldmanresearch.com
Leave your comments