According to a research note published by global consulting firm Boston Consulting Group (BCG), prevention programs for HIV/AIDS have been implemented in many countries and they have lowered the rate of new infections.
However, BCG noted in its report that there is still an urgent need for stronger and more effective HIV prevention initiatives.
BCG further noted in its report that average global demand for a first-generation preventive HIV vaccine could range between 28 and 142 million courses over a 30-year period. The report added that demand could peak between 38 million and 152 million courses some seven to 10 years after vaccine launch.
According to BCG, the levels of demand could result in undercounted global sales revenue of $1.6 to $3.8 billion per year over a 30-year period.
The outlook certainly augurs well for GeoVax Labs Inc. (OTCQB:GOVX). Based in Atlanta, GeoVax Labs is a clinical-stage biotechnology company developing human vaccines against infectious diseases using its MVA-VLP vaccine platform.
The Company's development programs are focused on vaccines against HIV, Zika Virus, and hemorrhagic fever viruses (Ebola, Sudan, Marburg, Lassa). The company’s GOVX-B11 has been developed for use against the clade B epidemic of HIV in the Americas and Western Europe.
Yesterday morning, GOVX announced that the National Institute of Allergy and Infectious Diseases, (NIAID) part of the National Institutes of Health (NIH) has awarded it a Staged
Vaccine Development contract to further develop GeoVax's preventive HIV vaccine (GOVX- B11) and to manufacture the DNA component of GOVX-B11 for use in advanced human clinical trials.
GOVX noted that the base portion of the contract, with a value of $199,442, will support preparatory work for initiation of manufacturing. The contract also includes $7.6 million in additional development options that may be exercised by NIAID, bringing the total potential value of the contract to $7.8 million.
The scope of the product development plan covered by the contract includes process development, cGMP-compliant manufacturing of vaccine bulk drug substance and final drug product, testing and characterization of the manufactured products, stability studies, and regulatory filings.
Commenting on the development, Robert McNally, PhD., GeoVax Labs’ President and CEO, said that with NIAID's award, the company is advancing its GOVX-B11 vaccine in clinical trials for prevention of disease caused by HIV-1 clade B, the subtype of the HIV virus prevalent in North American and Western Europe.
Surprisingly, shares of GOVX were down on the news yesterday and have been down in trading so far today as well. With that said, shares are trying to muster together a rally over the last few months, rising 72% from their 52-week low in late February.
It hasn’t been easy over the last year for biotech stocks with the sector in a prolonged downtrend, however with the recent biotech resurgence and the positive news from GOVX, sentiment may be getting more promising for this micro-cap Company.
