Vical Incorporated (NASDAQ:VICL) Trading at a Discount?

Vical Incorporated (NASDAQ:VICL)

Vical Incorporated (NASDAQ:VICL) stock has rebounded off its 52-week low, established yesterday, but is giving up gains as the trading day progresses. Volume is over ten times the listed daily volume. Yesterday the biotechnology company closed at $1.66, a new 52-week low, then today the market gapped up and shares opened at $2.08 before hitting their inter-day high of $2.12. Since then, sellers have stepped in and VICL shares are trading under $1.90 as of this writing (12:25 PM EST).

Vical Incorporated (NASDAQ:VICL)

The rebound came after the company announced the pricing of its upcoming underwritten offering of 14,285,714 shares of common stock, or common stock equivalents, at $1.75 per share. The gross proceeds are expected to be approximately $25 million, before deducting expenses payable by Vical. The offering is expected to close on or about November 10, 2017. Vical has granted the underwriter a 30-day option to purchase up to an additional 2,142,857 shares of common stock in connection with the public offering.

San Diego, CA-based Vical Incorporated (NASDAQ:VICL) develops products using its proprietary DNA delivery technologies for the prevention and treatment of serious or life-threatening diseases. It is developing various DNA-based vaccines and other therapeutics, such as VCL-HB01 therapeutic vaccine for herpes simplex virus-2 – currently in a Phase II clinical trial to prevent and protect against lesion recurrence. Vical has collaborations with Astellas to develop and commercialize therapies for the control and prevention of CMV infection in immunocompromised patients. The company has also collaborated with Merial for use of the Vical’s DNA delivery technology to design a therapeutic vaccine that helps extend the survival time of dogs with oral melanoma.

VICL Stock Performance

The lone investment firm that follows Vical Incorporated (NASDAQ:VICL), rates VICL stock as a “Strong Buy”. It has given VICL stock a one-year price target of $7.10.

EPS losses have been contracting since 2013 when the company posted a figure of (-$3.60). In 2016, that EPS loss was just (-$0.90). Those losses came on the back of erratic annual sales numbers. In 2012, Vical reported sales of $17.5 million, followed by, in 2013, $7.7 million, then $15.2 million, $21 million, then, for 2016, $14.5 million.

Interestingly, VICL stock is currently trading under its posted cash/share figure of $2.54 and its book/share value of $3.29.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

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About the author: Marc has a degree in economics and a MSc. in Finance. Over his 20-year career, Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.

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