UPDATE: H.C. Wainwright & Co. Initiates Coverage on GenVec as Overlooked Key Innovator

In a report published Monday, H.C. Wainwright & Co. analyst Reni Benjamin initiated coverage on GenVec (NASDAQ: GNVC) with a Buy rating and $9.00 price target.

In the report, H.C. Wainwright & Co. noted, “We are initiating coverage of GenVec with a BUY rating and a target price of $9. The company's lead program for hearing loss is partnered with Novartis (NVS; Not Rated) and is slated to enter clinical trials in 1H14. The initiation of the study will trigger a $3 MM milestone payment to be used for the internal advancement of the company's adenovirus based gene therapy platform.

"With the lead program in the capable hands of a large pharma partner, multiple milestone payments tied to the advancement of the clinical program, the FDA's sanction to move forward with clinical studies as per the National Institutes of Health's Recombinant DNA Advisory Committee (RAC), and $10 MM in cash (proforma), we believe GenVec represents an overlooked and key innovator in the new arena of gene therapy working to address indications with no therapeutics options.”

GenVec closed on Friday at $3.48.