The race is on for a COVID-19 vaccine. With more than 1.8 million people now infected, with 114.000 deaths on record, companies are racing against the clock. Johnson & Johnson (NYSE:JNJ), Moderna (NASDAQ:MRNA) and Inovio Pharmaceuticals (NASDAQ:INO) are some of the top ones we’re watching. I really like INO stock in the short term because it is making great strides in the race to a vaccine.
However, with Inovio now in phase one of human trials, we may be closer than ever to putting the virus to bed. The first time I weighed in on Inovio, it traded at $4.86. That was on Jan. 30. Now, just weeks later, shares of INO are up to $8.20, and trending higher. All as the coronavirus threat persists without a vaccine in hand, which could soon change thanks to companies like Inovio.
Should all go well, I’d like to see shares of INO stock closer to $20.
Human Trials and INO Stock
Just weeks after claiming it developed a potential COVID-19 vaccine in three hours, Inovio launched a phase one trial to see if it’s safe for humans. Over the course of the trial, 40 people will be given two doses of the vaccine and monitored for a reaction.
If all goes well, the company will start another study to assess its efficacy against the virus.
“We’ve set the internal goal of having 1 million vaccines for testing by end of 2020,” says Kate Broderick, Senior VP of R&D at Inovio.
To date, preclinical data shows promising immune responses across animal models.
“Preclinical results for INOVIO’s COVID vaccine have been consistent with completed Phase 1 vaccine study for Middle East Respiratory Syndrome (MERS), also caused by a coronavirus, in which INOVIO’s DNA vaccine was well tolerated and induced high levels of antibody responses in 95% of subjects, while also generating broad-based T cell responses in nearly 90% of study participants,” notes Inovio.
Trade on the Anticipation of News
Granted, once the coronavirus story disappears, so will the gains in INO stock.
That shouldn’t matter to you at the moment, though. Right now, we’re focused solely on making money from the anticipatory effect. For example, imagine you’re standing at the top of a hill with a snowball. Now, imagine yourself rolling it down the hill. As you roll, the small snowball gets bigger and bigger. That same thing happens to stocks on news anticipation.
As investors anticipate and see better news from INO stock, the bigger the potential profit. As we near potentially better news from Inovio, we could see higher highs on excitement for a vaccine, and the ability to put this virus threat to bed.
Don’t get caught up on the fear of what can happen after the virus threat is over.
At the moment, focus solely on the anticipation and the excitement this pharmaceutical stock can offer immediate-term. If all goes according to plan, I strongly believe INO could be a $20 stock, near-term.
Ian Cooper, a contributor to InvestorPlace.com, has been analyzing stocks and options for web-based advisories since 1999. As of this writing, Ian Cooper did not hold a position in any of the aforementioned securities.
