Needham & Company Downgrades Genocea Biosciences (GNCA) to Hold

Needham & Company downgraded Genocea Biosciences (NASDAQ: GNCA) from Buy to Hold, saying uncertainty around the HSV2 program is a concern.

Analyst Alan Carr commented, "Genocea announced positive results from its Phase 2b trial of GEN-003 in Herpes Simplex Type 2 (HSV2) in early Jan 2017. Given financial constraints, however, mgmt now plans to seek a collaborator prior to initiation of Phase 3 development. We believe this creates meaningful uncertainty for GEN-003 development timelines as well as the stock. Mgmt previously announced a shift in strategic focus from infectious disease to immuno-oncology. However, initial candidate from latter program is not expected to reach clinical development until YE17. We are downgrading to HOLD based on uncertainty around GEN-003 and lack of near-term milestones w/ immuno-oncology program. ATLAS platform holds substantial value and we believe stock remains attractive for long-term investors w/ horizon beyond 2017."

For an analyst ratings summary and ratings history on Genocea Biosciences click here. For more ratings news on Genocea Biosciences click here.

Shares of Genocea Biosciences closed at $4.44 yesterday.

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