FBR Chimes in on Genocea Biosciences Inc (GNCA) Following 2Q16 Update

Genocea Biosciences Inc (NASDAQ:GNCA) just hosted a conference call to discuss its second-quarter results and to highlight its clinical pipeline progress. The biotech firm continues to commercialize key breakthroughs in vaccine discovery and development since its founding in 2006, paying specific attention to the development of vaccines that harness the body’s immune response using T-cells to target specific disease-causing organisms such as Herpes Simplex Virus Type 2 (HSV-2).

In light of this, FBR analyst Christopher James reiterates an Outperform rating on the stock, with a $17 price target.

GNCA has a comprehensive development strategy in the works for its investigational herpes simplex virus-2 vaccine GEN-003, designed for the potential treatment of HSV-2. The company’s focus remains on Phase IIb bridging data, with two near-term study readouts expected in 2H16. The data will assess GEN-00e’s activity along with a second study to be initiated fourth-quarter to pair GEN-003 in combination with chronic suppressive oral antivirals.

James indicates, “We expect data and details from the immunooncology (IO) collaborations in 4Q16. Overall, Genocea has had a productive quarter and we remain focused on key virologic and six-month data readouts from the Phase IIb bridging study with GEN-003 expected in September and around year-end.” For James, this Phase IIb trial could very well enhance GEN-003’s profile in the treatment of HSV-2. The analyst contends that if “GEN-003 is able to demonstrate an additive effect to the oral treatment regimen,” it has the capacity to expand its reach for patients.

Additionally, the firm reported a second-quarter loss per share of ($0.39) against James’ and consensus projections of ($0.43). Genocea closed the quarter with cash flow of $86 million, which for James, should sustain the firm well into 2H17.

As usual, we recommend taking analyst notes with a grain of salt. According to TipRanks, which measures analysts’ and bloggers’ success rate based on how their calls perform, Christopher James is ranked #3,985 out of 4,105 analysts. James has a 36% success rate and loses 15% in his average returns. When recommending GNCA, James faces a loss of 3.3% in profits on the stock.

TipRanks analytics demonstrate GNCA as a Buy. The analyst polled by TipRanks in the last 3 months rated a Buy on the stock.

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