GNCA - Genocea stock plunges on cutting workforce by 65% and exploring sale or merger alternatives; Stifel cuts PT to $0.16

Genocea Biosciences (NASDAQ:GNCA) has initiated a process to explore a range of strategic alternatives to maximize shareholder value, including the sale of all or part of the company, merger or reverse merger. The company has engaged professional advisors, including an investment bank to act as a strategic advisor for this process. The company has approximately cut its workforce by 65% reduction in the second quarter of 2022 as part of the restructuring plan. The company is also reviewing its clinical and research programs to determine an appropriate course of action. Stifel analyst Benjamin Burnett downgraded Genocea Biosciences (GNCA) to Hold from Buy with a price target of 0.16, down from $4.70 in response to this announcement. The analyst says he was wrong to be optimistic on GEN-011, and is downgrading shares as he's "not confident this program, nor the business, is viable going forward." Without more balance sheet clarity, viability

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Genocea stock plunges on cutting workforce by 65% and exploring sale or merger alternatives; Stifel cuts PT to $0.16