Judging by the price action, it’s evident that Inovio (NASDAQ:INO) stock is a fast-moving, high-growth asset. After all, the INO stock price rocketed from $3 and change to more than $13 within the span of a year.
Sure, the price wobbled along the way, but that’s not unusual for stocks in the biotechnology sector. Besides, the spread of the novel coronavirus caused some volatility in the stock market. Though in the case of INO stock, the spread of the virus actually boosted the share price.
That’s because Inovio has been a fast mover in the race to identify a vaccine for Covid-19. But is that all there is to Inovio? Though Covid-19 is undoubtedly a factor, informed investors will find that this important biotech company is not wholly dependent on the discovery of a coronavirus vaccine.
A Track Record of Vital Solutions
Much of the concern surrounding the coronavirus is that it’s a highly infectious disease. So far it hasn’t been fatal for the majority of patients. However, its rapid spread is among the factors that make this virus a priority for the public, governments, and the scientific community.
What makes Inovio such a strong contender among biotech firms during this challenging time? Stakeholders, including INO stock investors, are counting on the company because it has a strong track record of quickly identifying potential solutions when infectious diseases occur.
Inovio is well-known in the biomedical community for its leading-edge clinical research lab located in San Francisco, California. Rapid production capabilities at this lab are enhanced by high-grade DNA-manufacturing capabilities.
This vast laboratory space includes, among other features, 6,000 square feet of dedicated BSL-2 research lab space plus 5,000 square feet of cGLP labs to analyze, store and process human clinical trial samples.
With top-of-the-line facilities and equipment, along with a highly qualified research team, Inovio is able to provide rapid solutions for infectious diseases:
- 15 months to clinic with a response to Ebola, with a 95%
response rate after the second dose
- Nine months to clinic with a MERS response, with a 95%
response rate after the second dose and a 98% overall response rate
- Just 6.5 months to clinic with a response to Zika
Developing responses to infectious diseases is generally a time-consuming process, so Inovio’s response rates are truly impressive. Therefore, it’s understandable that investors have high hopes for this proactive biotech market leader.
INO Stock Has a Strong Cash Position
Being first to market with a vaccine is not a simple matter. Not only is there a time investment and plenty of man hours involved, but there’s a major capital commitment as well.
Fortunately for INO stockholders, they can rest assured that Inovio isn’t short on cash. That’s important because the winner in the race to bring a coronavirus vaccine to market might depend on the ability to invest in facilities, equipment, top talent, and so on.
At the end of last year, Inovio had $89.5 million cash and short-term investments. This put the company in a strong fiscal position before the spread of the coronavirus accelerated.
And in the first quarter of 2020, Inovio secured $208.2 million in net proceeds from new financing. So there’s no doubt that this company is on solid financial footing.
Just as importantly is Inovio’s diverse pipeline. Some traders might consider INO stock to be a coronavirus stock, but the focus of this company is wider than that.
With a strong focus on DNA medicines, Inovio’s pipeline addresses a range of infectious diseases but also diseases associated with the human papilloma virus (also known as HPV) as well as cancer.
And yes, Inovio is working hard to leverage its DNA-focused research towards a potential coronavirus vaccine. If successful in this endeavor, INO stock could increase in value very quickly.
The Final Word on INO Stock
There’s an understandable urgency in the race to find a coronavirus vaccine. Yet, INO stockholders don’t need to pin their hopes on the company developing a Covid-19 vaccine first. Irrespective of the outcome, Inovio is a proactive and well-funded biotech firm that’s worth your investing capital.
Louis Navellier had an unconventional start, as a grad student who accidentally built a market-beating stock system — with returns rivaling even Warren Buffett. In his latest feat, Louis discovered the “Master Key” to profiting from the biggest tech revolution of this (or any) generation. Louis Navellier may hold some of the aforementioned securities in one or more of his newsletters.