Genocea Biosciences Inc (NASDAQ:GNCA) reported that it is laying off nearly 40 of its 100 employees and intending to unload a genital herpes vaccine plan as it shifts its focus to advancing cancer treatments.
The details
Genocea reported that it was halting all development and spending activities linked to GEN-003, which the firm initially touted as a possible blockbuster. The company reported it was assessing strategic options for the vaccine, usually shorthand for a sale or other deal. It will instead focus on advancing cancer vaccines that are intended to lead a patient’s immune cells to target tumors, including one experimental medication that is expected to start human studies in 1H2018.
As part of the reorganization, Genocea said it was reducing 40% of its workforce. A spokesperson said the firm had around 100 employees prior to the update. CEO Chip Clark expressed in a statement that to their teammates who’ve offered so much to develop GEN-003, they provide their deep thanks for their dedication. Following their measures, GEN-003 has the prospect to serve as a cornerstone therapy for genital herpes infections.
They consider this strategic procedure, which is already ongoing, as the best way to lead to commercial release of and enhance shareholder value from GEN-003. Genocea reported that the job cuts should help the company save $6.5 million per year, and free up enough funds to support its operations into the middle of 2018.
In July, the firm reported what it called promising data from a mid-stage study of GEN-003, and said it anticipated to push the vaccine into a Phase III trial. The firm has mentioned that the vaccine, if permitted, would be the first advanced genital herpes treatment in over two decades.
In the last trading session, the stock price of Genocea declined more than 2% to close the day at $1.43. The decline came at a share volume of 1.9 million compared to average share volume of 1.07 million. After the latest decline, the market cap of firm was noted at $41 million. Genocea stock price is trading close to its 52-week low price of 1.13.
