Biotech Mailbag: Recap on GenVec

Welcome back to the Biotech Mailbag.

My column on GenVec (GNVC - commentary - Cramer's Take) and the interim data from the phase III study of the company's pancreatic cancer drug TNFerade brought in a slew of email, mostly positive, I'm happy to report.

John B. writes, "Thanks for the thorough coverage of GenVec. I didn't wait for your, or anyone else's interpretation, though. I was up early in anticipation of GenVec's results today, and I didn't like what I saw overall. I'm worried about cash for the future as well. I liquidated my position at 6:30 a.m. California time. It's been four years, and here we are back to 60 cents.

"There's time to buy again before the 2009 study results. In the meantime, I'm back to trading GenVec. The 60 cents level will provide a nice swing trade for me and many others, and another reason the stock price will not see a dollar again for a long time.

"Thanks again -- good article. My faith in your reporting is restored completely."

I don't have much to add but thanks, and to say that this is an extremely difficult market for cash-strapped biotech companies. Probably the worst I've seen. As an investor, you need to understand that any company in need of cash in the next year -- probably more like the next two years -- is facing serious obstacles.

With that said, I do wish GenVec luck in finding a partner or some non-dilutive way to raise money and keep the TNFerade study going. While I'm skeptical about the drug's prospects, I believe GenVec is conducting precisely the right study to get a final answer, and in the interim, the company is being transparent about the data in a way that will serve it well in the future, regardless of what happens.

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At the time of publication, Feuerstein's Biotech Select model portfolio was long DNA, CELG and GILD.

Adam Feuerstein writes regularly for TheStreet.com. In keeping with TSC's editorial policy, he doesn't own or short individual stocks, although he owns stock in TheStreet.com. He also doesn't invest in hedge funds or other private investment partnerships. Feuerstein appreciates your feedback; click here to send him an email.