Shares of Genocea Biosciences (GNCA) closed up 94% today after this morning’s announcement of achieving positive phase 2 results in patients with genital herpes. This phase 2 trial used the company’s vaccine known as GEN-003 to treat these patients over a 12-month period. The vaccine showed that it was able to obtain statistically significant reductions of viral shredding compared to baseline. 

GEN-003 even showed that it was able to impact disease greatly in the secondary endpoints that were measured as well. This is great news for these patients with genital herpes. Even better, the vaccine was shown to be safe and well tolerated which is a huge plus as well.

What makes this form of treatment better than standard of care treatments? Primarily, GEN-003 only needs to be given to a patient once, and that treatment takes effect over 12 months. Patients on standard of care antiviral oral drugs have to take one pill every day. If one dose of GEN-003 can eliminate the need for a whole year of oral antiviral drugs, that is a huge competitive advantage. Now we will just have to see if it can pass muster in a phase 3 clinical trial and ultimately FDA approval. 

Gaining 94% today on this phase 2 data news (helped by an Outperform rating from Cowen this afternoon) is impressive. There is more good news, and that is that investors can look forward to additional data in the same indication. In the third quarter of 2016 Genocea expects to release phase 2b data for these patients with genital herpes. Once again the company is using its GEN-003 vaccine to treat them. With today’s positive development, along with new data coming later this year, buying some shares for a trade/investment may not be a bad idea. (Cowen gives a price target of $40; today’s closing price is about $9.)

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