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Biotech / Medical : VICL (Vical Labs)

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From: bob zagorin2/15/2006 2:56:58 PM
   of 1972
 
GS on VICL

Vical Inc. EPS (FY Dec) 2006E ($0.92), 2007E ($1.02) Underperform/Neutral
(VICL) $4.11
Vical reported Q4/05 loss of $0.20 ex-ESO, versus our and consensus estimates
$0.17 and $0.21 respectively, on lower contract revenue. During Q4/05, VICL made
progress on DNA vaccines, including (1) initiating P2 trials on CMV and HIV (2)
received $1MM milestone fee from Merck, which started a P1 cancer trial and (3)
completed 1st milestone in NIH avian flu program. VICL also plans to begin
enrollment of the 5mg dose cohort for IL2 electroporation therapy of melanoma.
VICL has a broad technology platform in DNA gene delivery, solid partners, and
years cash position. We maintain our Underperform rating while awaiting progress
on proprietary projects. Our coverage view remains Neutral. Risks to our rating
include acceleration of pipeline, avian flu pandemic, and acquisition potential.
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