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.

Don’t miss out! Stay informed on $VICL and receive breaking news on other hot stocks by signing up for our free newsletter!

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.

Vical Incorporated (NASDAQ:VICL) Candidate Awarded Limited Use Indication

Vical Incorporated (NASDAQ:VICL)

Vical Incorporated (NASDAQ:VICL) gained 7.03% after the U.S. Food and Drug Administration said its investigational antifungal VL-2397candidate drug would be eligible for a Limited Use Indication, pending Phase 2 trial outcome.

Vical Incorporated (NASDAQ:VICL)

Vical Investors Reaction

Vical Incorporated (NASDAQ:VICL) recorded a new 52-week high of $3.70 after the FDA approved the Limited Use of its candidate drug. However, the stock fell to end Tuesday’s trading session and ended at $2.74 a share. The stock is up by more than 5% for the year and traders are waiting to see if it will rise even further on the new designation.

The Limited Use Indication designation is an important milestone. It will allow Vical Incorporated (NASDAQ:VICL) to develop and commercialize VL-2397 on an accelerated basis.

“The preclinical and clinical data to date for VL-2397 supports the profile of an ideal antifungal agent which must be fast acting, have minimal drug interactions, and a low risk for toxicity,” said Dr. Haran Schlamm, MD, Vical’s infectious disease consultant.

Vical Incorporated (NASDAQ:VICL) is in the process of initiating Phase 3 trial of VL-23497 for the treatment of invasive aspergillosis (IA) in acute leukemia patients. The trial will be a non-inferiority study that will seek to compare the candidate drug to the standard of care treatment for IA.

The biopharmaceutical company plans to enroll approximately 300 acute leukemia patients. The primary end for the trial will be “all cause mortality” (ACM) at 4 weeks with the secondary endpoint being ACM at 6 weeks. Vical Incorporated (NASDAQ:VICL) has already partnered Mycoses Study Group Education and Research Consortium for the design and preparation of the proposed trial.

Vical Pipeline

In addition to VL-2397, Vical Incorporated (NASDAQ:VICL) is working on ASP0113, a potential first in class investigational DNA vaccine for the prevention of latent cytomegalovirus. The vaccine is currently in multinational Phase 3 registration trial in HCT patients. Data from the trials is expected in the first quarter of next year.

Vical Incorporated (NASDAQ:VICL) is also developing an HSV-3 therapeutic vaccine, VCL-HBO1 for the reduction of lesion recurrences in patients with symptomatic genital herpes infection. The vaccine is currently being evaluated in Phase 2 study of healthy adult subjects.

Separately, the biopharmaceutical company reported a net loss of (-$3.3) million for its second quarter, up from a net loss of (-$1.3) million reported last year. Revenues in the quarter totaled $3.4 million compared to $4.1 million reported last year. Vical Incorporated (NASDAQ:VICL) had cash and investments of $37.3 million as of June 30, 2017.

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.

Don’t miss out! Stay informed on $VICL and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.