E Shares Of Vical Tumbled 43% After Reporting Failed Results In Herpes Vaccine

TM editors' note: This article discusses a penny stock and/or microcap. Such stocks are easily manipulated; do your own careful due diligence.

Shares of Vical (VICL) closed down 43% today after the company reported negative results in its Phase 1/2 trial in patients with Herpes. The trial was to use the company's herpes vaccine known as Vaxfectin in an attempt to reduce viral shedding in patients. The trial used two different types of Vaxfectin. It used both, a monvalent vaccine of Vaxfectin and a bivalent vaccine of Vaxfectin. 

Monovalent means that the vaccine was using only one antigen to target the Herpes virus, while bivalent means using two antigens to target the Herpes virus. As noted, the trial failed to meet the primary endpoint of the clinical trial of reducing viral shedding of Herpes.

At least there were two pieces of  good news from the clinical trial. The first one was that the vaccine was safe and well tolerated with no grade 4 adverse events or any other serious adverse events observed. The other good news was that the bivalent vaccine - using two antigens - was able to achieve a secondary endpoint of reducing viral load and a reduction in the rate of genital lesions. 

Vical still has cash until 2017, primarily because of a partnership with Astellas, Inc.(ALPMF). Vical has a Cytalomegalovirus - CMV - vaccine that it is developing and has partnered out this vaccine with Astellas. Considering that the company has been floundered with consecutive failures it is very risky to take a position in this stock unless you can tolerate throwing some funds in that you wouldn't mind losing. I would definitely avoid day-trading this at all.

Disclosure: None.

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