Genocea Biosciences Inc (NASDAQ:GNCA): Analysts Turn Bullish On Promising Genital Herpes Trial Results

Genocea Biosciences Inc (NASDAQ:GNCA)

Genocea Biosciences Inc (NASDAQ:GNCA) gapped higher in Monday’s trading session, after reporting top line Phase 2b clinical trial results for its Genital Herpes candidate drug GEN-003. The stock was up by 15.45% to end the day at $5.83 a share.

Candle Bar Graph for $GNCA

Analysts Bullish Bets

Monday’s rally helped reverse a strong downward, but short-term, trend. The stock of Genocea Biosciences Inc (NASDAQ:GNCA) faces resistance at the $6 a share mark as it continues to trade in a tight $5.12-$6.04 trading range. It now awaits to be seen if a wave of bullish coverage from analysts and equity firms will help push the stock higher from current trading levels.

In a research note to investors, Needham analyst, Alan Carr, has upgraded Genocea Biosciences Inc. (NASDAQ:GNCA) shares with a new share price target of $12. The upgrade is based on the company top-line clinical results on its genital herpes candidate drug.

“Our $12 price target is based on 25x our $1.89 2024 EPS est, discounted 25% annually. We assume $750M peak U.S. sales 2030 based on average $750/pt/yr revenue w/ 5% annual price increases. We assume BLA submission mid-2021 and U.S. commercial launch mid-2022,” said Mr. Carr.

Cowen analyst, Phil Nadeau, has also initiated coverage of Genocea Biosciences Inc. (NASDAQ:GNCA) with an ‘outperform’ rating. The analyst has a $40 a share price target. The analyst, in a research note to investors, maintains that GEN-003 stands a higher chance of succeeding in Phase 3 trial which should present a significant commercial opportunity for the company.

GEN-003 Topline results

In the 12-month Phase 2b clinical trial, GEN-003 reduced the median genital lesion rate by 49% compared to a placebo. The candidate drug achieved and improved its clinical endpoints with no changes in its safety profile.

The trial results, according to Genocea Biosciences Inc. (NASDAQ:GNCA) Chief Executive Officer Chip Clark, solidify the strong clinical profile of Gene-003 as a novel treatment for Genital Herpes. Former chair of the Centers for Disease Control, Jonathan Temte, expects the immunotherapy to change the treatment paradigm for patients with the condition.

“The benefits of using a periodic immunization to achieve fewer and shorter genital herpes outbreaks without the compliance challenges of a daily pill burden would represent an extremely important alternative for patients with genital herpes,” said Mr. Temte.

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: Monica has an undergraduate degree in Accounting and an MBA she earned – with Honors. She has six years of experience in the financial markets and has been an analyst for the past two years.

Genocea Biosciences Inc. (Nasdaq: GNCA) Reports Phase 2b results – shares up

Genocea Biosciences, Inc. – Nasdaq: GNCA

Genocea Biosciences Inc. reported positive results in a Phase 2b clinical trial. Shares (Nasdaq: GNCa) are up over 13% on the news.

Chip Clark, president and chief executive officer of Genocea stated “We are very pleased to have demonstrated such a powerful impact on genital herpes clinical disease in this trial, supporting the groundbreaking potential of GEN-003 to be the first-ever therapeutic vaccine for a chronic infection and the first advance in the treatment of genital herpes in more than 20 years…”

Genocea is harnessing the power of T cell immunity to develop life-changing vaccines and immunotherapies. T cells are increasingly recognized as a critical element of protective immune responses to a wide range of diseases, but traditional discovery methods have proven unable to identify the targets of such protective immunity. Using ATLAS™, its proprietary technology platform, Genocea identifies these targets to potentially enable the rapid development of medicines to address critical patient needs.

Five firms follow Gencocea Biosciences Inc. Four rate GNCA as a “Strong Buy” and one rates GNCA a “Buy”. Their consensus pricet target is $15. Genocea Bioscinces reported sales of $700,000 in 2015. This represented a drop from their 2012 reported sales of $2 million. EPS for GNCA have a similar history. Never achieving positive EPS, GNCA had its worst reporting year in 2014 when they lost $2.27 EPS. In 2015 GNCA improved to a loss of $$1,74 EPS.

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

Ticker Symbol GNCA
Last Price a/o 8:50 AM EST $5.15
Average Volume 132,000
Market Cap $130.4 million
Sales 0.50 million
Shares Outstanding 28.74 million
Share Float 24.8 million
Shortable Yes
Optionable Yes
Inside Ownership 0.40%
Short Float 14.15%
Short Interest Ratio 16.56
Quarterly Return 1.79%
YTD Return 10.19%
Year Return -10.63%