Inovio Pharmaceuticals' stock price has been on fire this year amid the COVID-19 pandemic. Inovio is one of the companies working on a COVID-19 vaccine. The Department of Defense has placed a huge bet on the company’s vaccine program.
Inovio's COVID-19 vaccine and Q2 earnings updates
Inovio's stock price oscillated between small gains and losses after the company released its second-quarter earnings and an update on its COVID-19 vaccine program after the market closed on Monday. The stock fell more than 6 percent before the updates.
The company reported revenue of $267,000, which rose from $136,000 a year ago but missed the consensus estimate at $2.6 million. Inovio posted a loss of $128.7 million or -$0.83 per share, which missed the consensus estimate at -$0.17. The loss widened from $29.4 million or -$0.30 a year ago.
Alongside the earnings results, Inovio provided an update on the progress of its COVID-19 vaccine program. The company said that data from the early Phase 1 trial of its COVID-19 vaccine candidate INO-4800 is undergoing peer review for publication in a top medical journal. Previously, Inovio said that the vaccine candidate elicited an immune response, which is a positive sign. Inovio aims to advance the INO-4800 study to Phase 2 and 3 trials in September.
Inovio has received $71 million in funding from the Department of Defense toward its COVID-19 vaccine program. Currently, the company is discussing expanding its vaccine manufacturing capacity. Inovio wants to be able to produce at least 1 million doses of its COVID-19 vaccine this year and up to 100 million doses next year.
Inovio has been competing with companies including Moderna, Novavax, Johnson & Johnson, and Pfizer to develop a COVID-19 vaccine. Russian companies are also in the hunt for a COVID-19 drug.
What is Inovio's stock price forecast?
Inovio's stock price closed the regular session at $18.99 on Monday, which marked a 6.1 percent slide from the previous closing. The stock was trading down more than 11 percent at about $16.80 in the pre-market session today.
At the close of regular trading on Monday, Inovio's stock price had risen 475 percent for the year. The peak Wall Street price forecast of $45 implies that Inovio's stock price could climb nearly 140 percent more from the current level. The base price forecast of $8 implies that the stock could drop 58 percent from the current level.
What is Inovio Pharmaceuticals working on besides the COVID-19 vaccine?
Inovio has been developing synthetic DNA products to treat infectious diseases and cancer. The company has more products in the pipeline beyond its COVID-19 vaccine candidate INO-4800.
INOVIO released data for newly diagnosed #glioblastoma multiforme (#GBM) patients who received our DNA medicine INO-5401 in combination w/ a PD-1 inhibitor. Results will be presented at #ASCO20 Virtual Scientific Program: https://t.co/4I8DPlY5qJ #DNAMedicines #DNAImmunotherapy pic.twitter.com/b7QTxBDWUE— INOVIO Pharmaceuticals (@InovioPharma) May 14, 2020
One of Inovio’s other drug candidates is INO-5401, which is currently in the Phase 2 study. Inovio is developing INO-5401 as a potential cancer drug. Another candidate, VGX-3100, is currently in Phase 3 study as a potential treatment for pre-cancers and cancers related to HPV.