Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, biopharmaceutical company Vical (NAS: VICL) has received a distressing two-star ranking.

With that in mind, let's take a closer look at Vical and see what CAPS investors are saying about the stock right now.

Vical facts

  

Headquarters (founded)

San Diego, Calif. (1987)

Market Cap

$264.4 million

Industry

Biotechnology

Trailing-12-Month Revenue

$17.1 million

Management

CEO Vijay Samant (since 1990)
CFO Jill Broadfoot (since 2004)

Return on Equity
(average, past 3 years)

(28.8%)

Cash/Debt

$86.9 million / $0

Competitors

GlaxoSmithKline (NYS: GSK)
Novartis
(NYS: NVS)
Sanofi
(NYS: SNY)


Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 8% of the 178 members who have rated Vical believe the stock will underperform the S&P 500 going forward.

Earlier this week, one of those Fools, All-Star zzlangerhans, succinctly summed up the bear case for our community:

Vical has concluded yet again that patients in the phase III trial of Allovectin-7 are living longer than expected, resulting in another lengthy delay before topline data will be released. Naturally, Vical bulls see this as a positive, concluding that it is an indicator that patients are living longer in the treatment arm. That sounds like an old story that I heard earlier this year with [Keryx Pharmaceuticals (NAS: KERX) ] and perifosine, with an unfortunate outcome for the bulls. I believe I've seen similar outcomes from prolonged phase III trials previously, but I can't remember one where the bull thesis turned out to be correct.

I've seen many phase III clinical trials fail against melanoma. It's a bad cancer to bet against and I won't start with Vical.

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The article Why Vical Will Keep Plunging originally appeared on Fool.com.

Fool contributor Brian Pacampara has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. Motley Fool newsletter services recommend GlaxoSmithKline. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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