Genvec Inc (NASDAQ:GNVC)

CAPS Rating: 1 out of 5

A biopharmaceutical company, which develops novel gene-based therapeutic drugs and vaccines.


Player Avatar zzlangerhans (99.85) Submitted: 11/10/2011 8:19:01 PM : Outperform Start Price: $2.66 GNVC Score: -61.04

Sorry, but I like this pitch so much I have to keep using it.

GenVec is like one of those old war criminals that settles into an obscure life teaching piano in a remote village. Chest-pounding pronouncements regarding TNFerade are now part of baby biotech history, and the company has reinvented itself as a contract vaccine developer and manufacturer. The current status of their pipeline and operations is murky, although management seems excited about their progress. The share price has been as low as 2.1 in the depths of early August pessimism, but has recovered moderately. A market cap of 34M is supported by cash of 29M as of the last quarterly statement, and the company is only burning 1-2M per quarter. Could be time for a rebound ...

Report this Post 3 Replies
Member Avatar zzlangerhans (99.85) Submitted: 8/17/2012 1:43:47 AM
Recs: 1

I bought 5000 shares of GenVec today at 1.9 for the GBMB. I'm not feeling as good about this as I did about my other recent buy Alexza, but this is a very interesting stock. Just to get the negatives out in front, GenVec wasted many years and a couple of hundred million bucks last decade trying to develop an adenoviral gene therapy for cancer, and it's questionable whether the last couple of years of the attempt were carried out in good faith. That should be enough to turn off anyone who likes their investments low or even medium-risk and transparent. See you later guys.

For the rest of us, the current market cap of 24M supported by cash of 21M indicates that GenVec has fallen off institutional radar screens and has not attracted any attention from retail investors to replace those disgusted by prior failure. That's all fair enough for flailing turds like Idera and Rexahn, but GenVec has a new CEO and the seeds of a new clinical pipeline. There's a collaboration with Novartis on a gene therapy for inner ear disorders as well as a fairly extensive preclinical vaccine program. RSV and HSV are very high value targets for which no vaccine currently exists.

Naturally, all this could go nowhere. GenVec has never accomplished anything to inspire much investor confidence. In fact, for some entertainment you might want to check out the transcript of the last earnings call here: .At the end of the Q&A a retail investor takes over the call and tongue lashes management severely, including the new CEO who seems pretty meek. This guy obviously lost a lot of money in the TNFerade debacle and has been waiting for his moment for a long time. To the credit of management, they take the guy's questions/ criticisms pretty seriously and let him go on for quite a long time. Is this a sign of a new leaf? Let's hope so, otherwise I might be the angry investor on the earnings call a few years from now.

Member Avatar Momentum21 (51.29) Submitted: 8/24/2012 6:10:18 PM
Recs: 0

that is some pretty good reading...the audio is even better. Peter sounds like Borat...he can't be real.

Member Avatar Momentum21 (51.29) Submitted: 8/29/2012 3:21:47 PM
Recs: 0

picked some up at 1.56 so I could play along with you...

Featured Broker Partners