A Balanced Take on Inovio Pharmaceuticals Stock
Inovio Pharmaceuticals (INO) shot to prominence last year as one of the early frontrunners in the race to bring a coronavirus vaccine to market. However, the biotech has been unable to keep up with its bigger peers and its Covid-19 program is still a way off from potential regulatory approval.
Inovio’s Covid-19 DNA vaccine candidate INO-4800 is currently in the Phase 2/3 trial, but in addition to taking the good fight to the coronavirus, the DNA vaccine maker has set its sights on other diseases it hopes to fend off.
Earlier this week, the company announced that the dosing of the first patient in a Phase 1b study of its Lassa fever DNA vaccine candidate, INO-4500, had taken place at the Noguchi Memorial Institute for Medical Research in Ghana.
220 18- to 50-year-old participants are expected to enroll in the program, who will receive two vaccinations 28 days apart with either 1.0 mg or 2.0 mg of INO-4500.
The Coalition for Epidemic Preparedness Innovations (CEPI) is funding the study. CEPI has previously provided Inovio with Lassa fever related funding. In 2018, the foundation granted the company $56 million to develop vaccine candidates for Lassa fever and Middle East Respiratory Syndrome (MERS).
A Phase 1 study has already taken place in the US, for which the candidate produced strong antibody and T cell immune responses.
H.C. Wainwright analyst Ram Selvaraju notes that the Ghanaian trial is the first West African study of Lassa fever. Moreover, INO-4500 notches another first; it is the only Lassa fever vaccine candidate to enter a human study.
“We believe an ideal dosing regimen could be selected from the Phase 1b study and advanced into a Phase 2 trial in West Africa,” the 5-star analyst said. “Positive Phase 2 data may allow INO-4500 to be stockpiled for emergency use, in our view. Importantly, Inovio’s DNA medicine platform has produced and advanced multiple vaccine candidates for infectious diseases into human trials, including the COVID-19 vaccine candidate INO-4800, which provide the company with multiple shots on goal in the vaccine space.”
For now, however, Selvaraju remains on the sidelines with a Neutral (i.e. Hold) rating. Citing “market valuation and volatility,” the analyst refrains from providing a price target. (To watch Selvaraju’s track record, click here)
In contrast, on where the share price is heading, the rest of the Street takes a decidedly positive stance; at $18.25, the average price target implies gains of ~59% over the next 12 months. Based on 2 Buys and 3 Holds, the stock currently has a Moderate Buy consensus rating. (See INO stock analysis on TipRanks)
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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
