Shares of micro-cap company GeoVax, which specializes in cancer treatments and vaccines, rose nearly 7% on Wednesday, January 15. The company announced “significant progress” in early testing of its cancer drug for head and neck cancer and confirmed plans to move to the next phase of clinical trials. Analysts see upside of nearly 550% for GeoVax, which is also developing a monkeypox vaccine.
Details
GeoVax, with a market capitalization of just over $21.2 million on the Nasdaq, climbed nearly 7% on Wednesday to close at $2.25 per share. The rally extended into early morning trading today, Thursday, January 16, with shares up another 1.3% as of this writing. Over the last 12 months, however, the stock has lost more than half its value, including a nearly 9% decline just since the start of January.
On Wednesday, GeoVax announced “significant progress” in its clinical trials of Gedeptin, a therapy for head and neck cancer, which includes cancers of the throat, larynx, nose, and mouth. The phase I results will enable the company to proceed to the next, phase II clinical trial, the company stated. Now, Gedeptin will be tested in combination with approved immunotherapy treatments, which boost patients’ immune system to help fight the cancer.
Phase II trials will focus on the combined therapy’s effectiveness in patients with first-recurrence head and neck cancer, GeoVax says. According to the Merck MSD Manuals, the standard treatments for this cancer currently include surgery and radiation therapy. For recurrences, patients may also receive immunotherapy with checkpoint inhibitors.
GeoVax believes that combining its drug with already-approved checkpoint inhibitors could lead to increased tumor response and decreased recurrence rates.
About GeoVax
GeoVax is a micro-cap company developing cancer treatments and vaccines. It gained investor attention in August 2024 after the World Health Organization (WHO) declared the outbreak of monkeypox to be a “public health emergency of international concern.” GeoVax is working on a monkeypox vaccine.
The WHO issued that statement on August 14, 2024. Within a week, GeoVax shares more than tripled to above $8 per share. However, the stock has since fallen back to pre-monkeypox levels.
All five analysts covering GeoVax rate the stock as a “buy,” according to MarketWatch. The average target price is $14.60 per share, nearly 6.5 times the current market price.
