$0.590 per share. Along with the price jump, its traded volume got doubled and exceeded 2 million shares for the day.GenVec grabbed the gain after the company reported its research on new vectors for vaccines. GNVC is highly optimistic about the new vectors and claims that they have great advantages for the immune system.[BANNER]
This announcement immediately activated the investors and reflected on the stock movement.
GenVec is a clinical stage biopharmaceutical company developing novel, gene-based therapeutic drugs and vaccines. At the beginning of this year, the company used to trade approximately 3 times higher than now to reach the price of $3.25 per share in March. However, since then the stock has moved down to under $1.
In its 2010 first quarter report, GenVec states that: “As a clinical stage biopharmaceutical company, our business and our ability to execute our strategy to achieve our corporate goals are subject to numerous risks and uncertainties.” According to the company’s financials, it appears to be true.
During the first three months of this year, GNVC has generated approximately two times lower revenue than the net loss, though its operating expenses have declined. At the end of March, GenVec had an accumulated deficit of $236.7 million as the company has suffered many losses since its inception. GenVec still expects the losses to continue, “together with our general and administrative expenses”.
This January GNVC entered into a research collaboration and license agreement with Novartis and sold 1,869,158 shares of its common stock to Novartis Pharma AG in a private placement for $1.07 per share. Though, GNVC still thinks that its estimated future capital requirements are not certain and the company is highly dependent on its clinical researches and commercialization activities.
GenVec still has more assets than liabilities available, though it will definitely need additional capital to develop its product candidates. Based on this informatin and the fact that the uptrend was broken today, the investors should keep following the future movement of the stock.
