) 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
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
We note that in Jun 2013, Vical and partner
Astellas Pharma, Inc.
) 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,
Gilead Sciences Inc.
Jazz Pharmaceuticals Public Limited Company
) look well positioned with a Zacks Rank #1 (Strong Buy) and a
Zacks Rank #2 (Buy), respectively.
ASTELLAS PHARMA (ALPMY): Get Free Report
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