20-Year Pro Trader Reveals His "MoneyLine"
Ditch your indicators and use the "MoneyLine". A simple line tells you when to buy and sell without the guesswork. It’s a line on a chart that’s helped Nic Chahine win 83% of his options buys. Here's how he does it.
Reacting to the announcements, the shares of the company are slumping 68.47 percent to $1.68.
Delving on Genocea's decision on GEN-003, Cowen noted that the company has been indicating for some time now that it would begin a phase III trial of GEN-003 if a partner or a source of funding is zeroed in.
GEN-003 is a protein subunit T cell-enabled therapeutic vaccine tested to reduce the duration and severity of clinical symptoms associated with moderate-to-severe genital herpes and to control transmission of the infection.
Analysts Phil Nadeau and Marc Frahm estimate that the phase III study would have cost the company about $150 million. Given the stock price of the company, the analysts think it could not have found a sufficiently attractive way to fund the phase III program.
Therefore, Cowen believes the company will no longer develop GEN-003 by itself and will advance the treatment candidate further only if a partner can be found.
See also: Attention Biotech Investors: September Ushers In Another Slew Of PDUFA Catalysts"We continue to project that GEN-003 will be successfully developed, but now we assume that GNCA will receive a 17.5% royalty on sales, rather than capturing all economics," the firm said.
Given the changed expectations, the firm lowered its DCF-based price target from $40 to $10, but it maintains its Outperform rating on the shares of the company.
The firm noted that Genocea is stopping spending on GEN-003 and reducing workforce by 40 percent. As a result, the company expects annualized savings of $6.5 million in personal-related costs, the firm added.
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20-Year Pro Trader Reveals His "MoneyLine"
Ditch your indicators and use the "MoneyLine". A simple line tells you when to buy and sell without the guesswork. It’s a line on a chart that’s helped Nic Chahine win 83% of his options buys. Here's how he does it.
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