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Inovio Pharmaceuticals, Inc. Message Board

  • garysnoop1 garysnoop1 May 23, 2014 5:21 PM Flag

    Insite into Market plan a few min.ago..

    Shares of Inovio Pharmaceuticals Inc(NYSEMKT:INO) are down around 6% this morning following an announcement that the company plans to initiate a 1 for 4 reverse split. According to the press release, the move was approved by both a majority of shareholders and Inovio’s Board, with an effective date to be announced at a later time.

    What’s important to understand is that this split is being announced only a few weeks ahead of the planned top line data readout for VGX-3100, Inovio’s experimental cervical cancer vaccine. Logistically, a split and a higher share price would probably do wonders in regards to institutional investment for this small-cap biotech, if the top line data are positive. Presently, institutions hold only 15% of Inovio’s outstanding shares, which has probably played a big role in the tremendous volatility in the company’s share price over the last year.

    On the flip side, a negative result for VGX-3100 would give the company room to raise funds for additional trials, without having to worry about potential delisting issues. In short, this is a smart move for the company, but its long-term consequences for shareholders won’t be known until VGX-3100′s data hit the Street.

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INO
10.61-0.08(-0.75%)May 27 4:00 PMEDT