Vical is a zombie company until it gets something out of the pipe. This just perpetuates the odor of failure that has been attached to Vical over Vijay's entire stint as CEO.
With Vijay's track record raising money through a shelf offering followed by bad news on a key trial would make Vical toxic. They better be saying we have excellent results and we're raising money to make sure we're first to market. Moreover, we're going to push CyMVectin because we're so confident following the HSV trial.
BELOW IS ZACKS ON THE DAY THE DEAL WAS ANNOUNCED. IF A TEST IS WORTH 8.3% GOOD RESULTS SHOULD BE WORTH TWICE THAT, ONCE THE MARKET FINDS OUT.
Vical Incorporated (VICL - Snapshot Report) shares jumped approximately 8.3% after the company announced that it has entered into an agreement with a Japanese biopharmaceutical company, AnGes MG, to develop and commercialize an equine polyclonal antibody therapy for patients afflicted with Ebola virus disease.
As per the terms of the agreement, Vical will develop and provide AnGes a DNA vaccine encoding the glycoprotein antigen of the 2014 Zaire strain of Ebola virus. AnGes will gain exclusive development and commercialization rights to the equine polyclonal antibody therapy in Japan. AnGes will also fund all development costs.
In exchange, Vical will receive an upfront payment and will be entitled to royalties on net sales. Vical will also get a percentage of payments received by AnGes, if the latter enters into sub-licensing agreements.
The AnGes Japanese website has a news release today indicating the Ebola vaccine test conducted in partnership with Vical produced good results and that development of the vaccine will continue.
If the HSV-2 results are good they will create a halo effect for the CyMVectin prospect and set up speculation on acquisition to market both lines. Because Vical market cap is so low, the speculation will show a strong possibility of explosive upside potential.
Vical's current market cap is due to the anvil effect of Allovectin-7 and the pathetic communication of CEO Vijay Samant, before and after that debacle. These results had better come out within the time frame Samant has stated, because his total lack of credibility, due in large part by long delays despite assurance of data. The Gates deal was a big turning point for me because he is giving the biotech space great personal attention and Vical wouldn't be allowed into his tent without much due diligence by a world class business leader.
Bill Gates Mom was a member of the Board of Trustees at the University of Washington. Given the partnership between U.Wash and Vical, it is likely that Gates has pretty good access and knowledge on what's happening with the Herpes trial.
My great hope is that the HSV news is good and they use the self to get rolling on CyMVectin. Between those two you have multi-billion $ annual vaccine targets and some momentum on getting self developed products into the pipeline.
The richest man on the planet, Bill Gates, says he's not nearly so fearful nuclear war will wipe out humanity — a pandemic has a shockingly far greater deadly potential.
"I rate the chance of a nuclear war within my lifetime as being fairly low," Gates says in an interview with Vox.
"I rate the chance of a widespread epidemic, far worse than Ebola, in my lifetime, as well over 50 percent."
Richard: It's all good! Gate's Mother was on the Board of Trustees at Washington, where Vical's Herpes partnership is the next great hope. I highly doubt that Gates would have made this deal without running the traps at U-Wash on the Herpes vaccine. We probably have seen the bottom and are making the first steps on the comeback.
Vijay has been talking about this space for FIVE years and he comes out with pre-clinical news. I'm glad to see it....but I still want to see him ousted as CEO. We need someone with credibility that can bring some deals to the table. Vijay has blown through all of his old staff and he's failed to deliver value anywhere. It's prima fascia evidence of zombie company status that he still has a job.
I'm saying Vijay and the BOD have zero trust and credibility and that's why the share price is so low. CyMVectin could have gone the route they're now taking nearly 5 years ago. I don't trust Vijay. The market doesn't trust Vijay and partners in this country don't trust Vijay. I fear the Herpes news because of the sudden CyMVectin activity. Why couldn't Vijay get a deal after years of effort? Why didn't he get fired for that failure alone? What value has he created for owners?
As of December 31, 2014, we had incurred cumulative net losses totaling approximately $395.7 million.
That's directly from the Annual Report. It indicates that Vical has been an incinerator for money. The market cap of the company would lead inescapably to the conclusion that investors believe the odd's of a return on that investment is low. Should Vical produce results the current prices would reward people who bought at this level returns that are better than Venture Capital. But, Venture Capitalists look for a strong management team when investing....if Vical had that sort of management the share price would not be where it is. Vijay has a total turnover in management beneath him, which is problematic, but the Board of Director's seem to have unlimited patience with Vijay, as if they are a perfect opposite of the investment community.
There is a ton of assumed smart money in the stock and you would assume if they thought a better CEO could move the share prices they would agitate to put one in place. But at this point Vical is so microcap that no one can spare the time for the trouble they would take.
Either the Herpes topline is good, Vical makes a CyMVectin deal or they should just put the intellectual capital up for bid. I now fear that taking the CyMVectin project to trials alone is a tactic to feed the market a new story when the Herpes trial numbers suck. That's a total Vijay move.
We'll know soon enough. I just haven't seen these guys deliver on anything and the Board of Directors appears to be worthless in terms of enforcing accountability. I am not talking about the A-7 failure....the delay yes, the trial result no. I am totally #$%$ about the long delay on CyMVectin while yacking about potential partnerships. Make a deal or shut up. If the limited trial had been started a year and a half ago we would have a better company with near term prospects today.
RC, my friend, I am talking about CyMVectin, Vical's attempt to enter what they estimate is a $4 billion market. There have been many presentations detailing partnership plans that Vijay couldn't consummate.....2.5 years that would have been long enough to produce the limited trial results to facilitate a deal now. I'm a Browns fan so I know what perpetual failure looks and feels like. Vijay is a Browns executive not a Buckeye like Urban Meyer who outperforms expectations and has urgent intensity. I want to see action that brings escalating share prices NOW.
Vical has gotten too much patience when a sense of urgency is what's badly needed. Waiting for a CyMVectin deal was bad management as Vijay struck out on making it happen. This board should have blown him up because the market hasn't bought his pitch for patience. Vical needs to move heaven and earth to get something done that moves them out of the zombie company list. Patience is the mother's milk of zombie companies that suck our capital.
He is the pony express in an instant communication world. CyMVectin may have something or it may be a piece of dung. I don't know. But when you preside over the world's longest cancer trial and it's revealed that the delay endangered patients rather than produced evidence of a life extension benefit, you can't yak all day without moving to produce results quickly. If Vijay had just pulled the trigger quicker he would have the results in hand on the proof of concept. Talking up the deal potential and seeing it rejected by the street is just pathetic.
Vical has waited for years to make a partnership on CyMVectin and Vijay couldn't get that done. Now, Larry Smith announces at the Roth Conference that Vical will do a small trial for proof of concept on it's own. The problem is the transparent failure to make a deal and the waste of time waiting. This is how Zombie companies led by inept CEO's function. They've spent over a half billion dollars to create a company worth just about what it has in cash on hand. Just incredible that this Board of Directors keeps Vijay.
I was glad to hear Larry Smith say at the Roth Conference that Vical may launch it's own small proof of concept trial on the universal CMV vaccine with an annual market of $4 billion. Vical has been saying for years that they have something of value to partner. Who wants a deal with some penny stock company so it's been all talk for many years. Vical should has pushed off on their own years ago because the lack of urgency to get something done has turned the market against CEO Vijay Samant and given credence to the idea that he is keeping a zombie company alive to milk it for a million bucks a year. Good results in a trial will change the balance of power in partnership talks. If they can't get something done soon it's going over the cliff.