Vical Incorporated (NASDAQ: VICL) is having an overwhelmingly strong start to the trading session in the pre-market hours this morning, and for good reason. The company announced that it intends on exploring strategic options, which proved to be a source of excitement for investors. Today, we’ll talk about:
- The exploration of strategic options;
- what we’re seeing from VICL stock as a result; and
- what we’ll be watching for ahead.
VICL Announces Exploration Of Strategic Options
As mentioned above, Vical Incorporated is having an incredibly strong start to the trading session this morning after making an announcement surrounding the exploration of strategic options. In a press release issued early this morning, the comapny announced that it plans to explore a range of strategic options designed to enhance shareholder value. In order to do so, VICL has retained MTS Health Partners, L.P. as its financial advisor throughout the process of the strategic review.
VICL is a company that is currently in the process of developing a novel anti-fungal drug known as VL-2397. The treatment is currently in the midst of a Phase 2 clinical trial. The company also has a preclinical program focused on a novel approach to chronic HBV infections.
In the release, the company said that it plans on ending the year with at least $40 million on hand. The company said that in the absense of a strategic transaction, these funds should be good to fuel operations until the top line data from the Phase 2 program is available, which are expected in 2020.
The company said that there is currently no time table set for the strategic review, but it will update investors on the progress.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dig into the market is that the news causes moves. In the case of Vical, the news proved to be overwhelmingly positive. After all, investors love strategic transactions as they tend to enhance value. So, it’s no surprise that excited investors are working to send the stock on a run for the top. Of course, our partners at Trade Ideas were the first to alert us to the gains. At the moment (8:17), VICL is trading at $1.30 per share after a gain of $0.07 per share or 5.69% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on VICL. In particular, we’re interested in following the story surrounding the company’s strategic review. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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