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GOVX: Lassa Grant from DoD Provides Capital

By John Vandermosten, CFA



GeoVax Labs, Inc. (GOVX) filed their 3Q:18 10-Q and press release on November 8th providing an operational and financial update on the company’s performance. Several highlights were noted in the release, including the receipt of several grants from government entities, collaborations and publications and presentations at scientific conferences.

Revenues in the quarter were $349,000, up from $248,000 in 3Q:17. Greater contributions from the Zika and Lassa Fever program were offset by a reduction in contribution from the HIV program. Total expenditures in the quarter were $1.0 million up 21% from the same period a year ago. R&D expenditures of $558,000 in 3Q:18 compared to $498,000 in 3Q:17 with the fluctuation due to timing of expenditures related to government grants. G&A was $459,000, increasing from $340,000 in the same period in 2017 with the increase due to greater stock compensation expense.

As of September 30, cash on the balance sheet was $511,000 and debt outstanding was $50,000 in a note held by the Georgia Research Alliance. Cash burn was $280,000 and $1.0 million for the third quarter and the first nine months of 2018 respectively.

View Exhibit I – GeoVax Vaccine Pipeline

GeoVax has made numerous advances across its pipeline portfolio in 2018. Several programs were provided government grants, including the Lassa Fever vaccine which received $2.4 million from the US Department of Defense, and the Zika vaccine which received $300,000 for the second year of the NIH SBIR grant. Many collaborations continue including the HIV program with American Gene Technologies (AGT) International, the oncology program with Vaxeal Holding and the Hepatitis B program with CaroGen Corporation. GeoVax is also working with Dr. Rafi Ahmed of Emory University Vaccine Center to develop an HPV vaccine and with the Burnet Institute in Australia for malaria. The data and conclusions from the programs are being shared at conferences worldwide which we discuss in our October 30 note.

Additional collaborations were announced following the release of third quarter results in the areas of HPV and multiple cancer indications. On November 13th, GeoVax and Virometix publicized their collaboration to develop an HPV vaccine. Their efforts will target preclinical animal testing of a combination of GeoVax’s MVA-vectored HPV vaccine candidates and Virometix’s synthetic HPV vaccine. This work is seen as complementary with GeoVax’ other efforts with Emory University developing vaccines for HPV-related head and neck cancers. GeoVax declared another collaboration on November 19th with Leidos, Inc. to design, construct, and characterize multiple immunotherapeutic vaccine candidates using GeoVax’s MVA-VLP vaccine platform combined with certain novel peptide PD-1 checkpoint inhibitors developed by Leidos. GeoVax will build the vaccine and Leidos will conduct further analysis. Leidos was recognized by the company for its competency in biopharmaceutical concept prototyping, regulatory strategy, and product development.

Year to Date Highlights

‣ GeoVax & Vaxeal collaborate in immunotherapy – January 2018
‣ Ebola publication in Nature scientific journal – January 2018
‣ GeoVax & Carogen collaborate on hepatitis B vaccine – February 2018
‣ GeoVax awarded fast track for Lassa Fever – April 2018
‣ GeoVax awarded NIH grant for Zika – May 2018
‣ GeoVax & Emory collaborate on HPV program for head & neck cancer – July 2018
‣ David Dodd appointed as Chairman and CEO – August 2018
‣ GeoVax & PharmaJet collaborate on Zika needle free vaccine – August 2018
‣ GeoVax awarded $2.4 million from DoD for Lassa Fever Vaccine – September 2018
‣ Publication of HIV Vaccine Review – October 2018
‣ Presentation of Phase I trial for HVTN 114 (HIV) – October 2018
‣ Collaboration with Virometix on HPV – November 2018
‣ Collaboration with Leidos on peptide PD-1 checkpoint inhibitors – November 2018


GeoVax continues to develop programs with a variety of grants while they seek a partner for later phase development of their pipeline. The company has been focused on preclinical work in other pipeline programs while seeking funding or partnerships to pursue a registrational trial in HIV. The value of vaccines to global health should not be ignored. The lifetime treatment cost of HIV is almost $400,000 in the United States, which is over $400 billion, when applied to the 1.1 million estimated to have the disease. Additionally, the public health value of preventing the spread of Ebola, Lassa Fever, Zika or any of the other infectious diseases targeted by the company’s MVA-VLP programs is immense.

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