Biotechnology specialist GeoVax (NASDAQ:GOVX) — which focuses on developing immunotherapies and vaccines against cancers and infectious diseases — just announced a partnership with global clinical research organization Allucent. The main purpose behind the agreement is to conduct a Phase 2b clinical trial of GeoVax’s next-generation Covid-19 vaccine. Now GOVX stock is popping higher on the news, with shares up more than 110% today before paring back some of the gains.
According to a press release, the company previously disclosed that it was a recipient of an award via the Rapid Response Partnership Vehicle (RRPV) for the development of its GEO-CM04S1 Covid vaccine. The Biomedical Advanced Research and Development Authority (BARDA), which broadly falls under the U.S. Department of Health and Human Services, funds the RRPV program. Among the top priorities of RRPV is to respond to emerging situations dynamically and quickly.
Per the agreement with Allucent, GeoVax “will sponsor a 10,000-participant, randomized, Phase 2b double-blinded study to evaluate the relative efficacy of GEO-CM04S1” compared to an already approved Covid vaccine. The key advantage with GEO-CM04S1 is that it delivers multiple antigens to a patient’s immune system in just one dose.
Compelling Relevance Is Moving GOVX Stock
GeoVax Chairman and CEO David Dodd laid out the bullish case for GOVX stock, stating the following about the partnership news:
“The work supported by BARDA’s Project NextGen will significantly advance the collective efforts to combat COVID-19 and its variants, and we are proud that GEO-CM04S1 was selected to be part of those critically important initiatives. We are delighted to be collaborating with Allucent on this important study.”
Likewise, Allucent Chairman and CEO Mark Goldberg added that the organization looks forward to leveraging its “clinical development expertise and resources to help develop next-generation booster vaccines that will enhance global immunity and save lives.”
Although Covid-19 fears have been fading since late 2021 and early 2022, the virus remains a major concern. According to the Centers for Disease Control and Prevention (CDC), addressing Covid “remains a public health priority.”
Further, as the Mayo Clinic notes, certain population groups — particularly those with chronic diseases – are at greater risk of severe or critical Covid-19 illness. Therefore, a more effective, next-gen vaccine is still a much-needed solution, providing relevance for GOVX stock.
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On the date of publication, Josh Enomoto did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
