Prevention is better than cure
Geovax Labs Inc (GOVX.PK) prophylactic HIV vaccine is one of the most advanced in development. It can elicit a durable immune response and has been safely administered in more than 500 individuals. Trials to date have been funded by the US NIH and a Phase IIb efficacy trial is being planned, which could start in 2015 subject to US government funding. A Phase I therapeutic vaccine trial is also being planned. While the current valuation is undemanding, additional funds will need to be secured, either through grants or via the capital markets, to support further trials.
One of the most advanced prophylactic HIV vaccines
GOVX-B11 is in development as a prophylactic HIV vaccine and has completed a Phase IIa trial in 299 healthy individuals, funded by HVTN (HIV Vaccine Trials Network, supported by the US NIH). Both T-cell (CD4 helper and CD8 killer) and antibody immune responses were observed, and six months after final vaccination there was a good durability of antibody response. These are critical aspects for a prophylactic HIV vaccine. A trial to investigate protective efficacy in at risk subjects is being planned, which could start in 2015 subject to NIH funding.
Also in development as a therapeutic
A Phase I trial of GOVX-B21 (GOVX-B11 co-expressing an adjuvant) with antiretroviral treatment (ART) is being planned to determine the immune response and the effect on HIV viral reservoirs. HIV reservoirs are established early in HIV infection, do not actively produce HIV, but are effectively invisible to ART. GeoVax is investigating grant and financing options to fund this trial, which could cost $2-3m.
NIH supported vaccine
GeoVax’s vaccine consists of a DNA primer vaccine and an MVA booster vaccine, which each elicit an immune response. GOVX-B11 targets the subpopulation of HIV that predominantly affects the developed world (Clade B). A Clade C vaccine for the developing world is in preclinical development. To date GeoVax has received >$25m in NIH grants, with a further $10m (est.) through HVTN clinical trial funding.
Valuation: EV of around $6.5m
The current EV of only c $6.5m based on net cash of $2.5m is undemanding for a company with a Phase II HIV vaccine. However, this is a challenging arena with many high-profile failures. NIH funding for the Phase IIb trial and securing additional funds for the Phase I trial could lead to a valuation uplift.
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