Sector Snap: HIV vaccine developers

Drug developers little changed on HIV study data; GenVec, Vical gain on separate announcements

• On 12:39 pm EDT, Thursday September 24, 2009

NEW YORK (AP) -- Shares of several companies developing potential HIV vaccines were little changed in reaction to Thursday's announcement from researchers that they may be on track for a breakthrough HIV vaccine.

The World Health Organization and the U.N. agency UNAIDS said a combination of two previously unsuccessful vaccines cut the risk of becoming infected with HIV by more than 31 percent in the world's largest AIDS vaccine trial. The study involved more than 16,000 volunteers in Thailand.

The U.S. Army sponsored the study with the National Institute of Allergy and Infectious Diseases.

The study involved the drugs ALVAC, from Sanofi Pasteur, the vaccine division of French drugmaker Sanofi-Aventis, and AIDSVAX, originally developed by VaxGen Inc. The latter drug is now held by Global Solutions for Infectious Diseases, a nonprofit founded by some former VaxGen employees.

U.S.-listed shares of Sanofi-Aventis gave up 30 cents, or less than 1 percent, to $36.91 in midday trading.

Elsewhere, shares of Gaithersburg, Md.-based GenVec Inc. jumped 4 cents, or 4.6 percent, to 80 cents. The company announced Thursday that the NIH executed its third option period, or fourth year, under a five-year contract for the development of HIV vaccine candidates. The company will receive up to $2.3 million under the contract, which has a total value of $52 million.

Vical Inc., which also has a partnership with NIH, gained 22 cents, or 5.2 percent, to reach $4.44, as the San Diego company announced positive results from a preclinical cancer vaccine study.

Meanwhile, shares of San Diego-based Inovio Biomedical Corp. fell 10 cents, or 6.2 percent, to $1.52. The company focuses on developing DNA-based vaccines, including one for HIV.

Targeted Genetics Corp., Seattle, saw its shares trade down a penny at 34 cents.

Companies currently making other HIV treatments dipped slightly. U.K.-based GlaxoSmithKline shed 66 cents to reach $38.96 while Foster City, Calif.-based Gilead Sciences Inc. fell 28 cents to $45.60.

Buzz up!