Back to top

Analyst Blog

Vical Incorporated (VICL - Snapshot Report) recently announced a restructuring plan which includes job cuts to preserve capital. 47 positions (around 39% of the total work force) will be cut bringing the total workforce to around 74. The company is now shifting its focus from its investigational cancer immunotherapy, Allovectin, to infectious disease vaccine programs.

We remind investors that Vical had suffered a major setback earlier this month when Allovectin failed to meet its primary endpoint in a phase III study. Top-line results from the phase III trial showed that Allovectin failed to achieve a statistically significant improvement in objective response rate (primary endpoint) and overall survival (secondary endpoint) versus first line chemotherapy. The study was conducted in metastatic melanoma patients.

Given the disappointing results, Vical had terminated its development program on Allovectin and announced the strategic focus shift. Shares were down 57.26% on the trial failure news.

We note that in Jun 2013, Vical and partner Astellas Pharma, Inc. (ALPMY) commenced a multinational phase III registration study on TransVax to control cytomegalovirus (CMV) in hematopoietic cell transplant (HCT) recipients.

Vical and Astellas intend to commence a phase II study of TransVax in solid organ transplant (SOT) recipients in the later half of 2013.

TransVax has orphan drug designation in the US and Europe for HCT and SOT patients.

Vical currently carries a Zacks Rank #3 (Hold). At present, companies like Gilead Sciences Inc. (GILD - Analyst Report)  and Jazz Pharmaceuticals Public Limited Company (JAZZ - Analyst Report) look well positioned with a Zacks Rank #1 (Strong Buy) and a Zacks Rank #2 (Buy), respectively.

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
CENTURY ALU… CENX 22.53 +4.50%
ERBA DIAGNO… ERB 2.91 +4.30%
PLANAR SYST… PLNR 4.31 +3.86%
MALLINCKROD… MNK 72.17 +3.83%
GTT COMMUNI… GTT 12.06 +3.52%