Needham Likes Genocea Biosciences Inc (GNCA) Potential for Upside Following R&D Day; Shares Rise 8%


Genocea Biosciences Inc (NASDAQ:GNCA) shares are surging nicely ahead 8% today after the firm hosted an R&D day yesterday via a webinar providing an overview of its HSV2 program as well as an introduction to its immuno-oncology program.

In reaction, Needham analyst Alan Carr reiterates a Buy rating on shares of GNCA with a $15 price target, which represents a 236% increase from where the stock is currently trading.

GNCA management maintained guidance for GEN-003 Phase 2b clinical symptoms (lesion) data in January 2017 and brought forth updated market assessment data with a new 12-month profile.

Carr highlights, “Genocea is collecting symptoms data on a daily basis w/ an electronic diary throughout ongoing Phase 2b placebo controlled trial. This is a key difference from prior trials where lesion data were only collected on paper diaries during 28-day swabbing periods. We expect additional data to enhance opportunity to demonstrate a difference from placebo.”

Overall, “Based on prior clinical viral shedding data and changes in design from Phase 2 to Phase 2b, we expect to see an impact on lesions early next yr. KOL C Drake reviewed challenges w/ immunotherapy and CSO J Flechtner reviewed Genocea strategy to identify cancer antigens. Genocea reiterated plans for cancer vaccine IND by YE17. Reiterate BUY, w/ expectations for upside in Jan 2017 around GEN-003 Phase 2b data,” Carr contends.

According to TipRanks, which measures analysts’ and bloggers’ success rate based on how their calls perform, four-star analyst Alan Carr is ranked #590 out of 4,274 analysts. Carr has a 43% success rate and realizes 5.8% in his annual returns. However, when recommending GNCA, Car loses 29.1% in average profits on the stock.

TipRanks analytics indicate GNCA as a Strong Buy. Out of 3 analysts polled by TipRanks in the last 3 months, all 3 are bullish on Genocea stock. With a return potential of nearly 514%, the stock’s consensus target price stands at $27.50.