Inovio Pharmaceuticals (NASDAQ:INO) has been one of my favorite biotech companies of 2020. That’s saying something, in a year when the search for a vaccine to the novel coronavirus is causing a flurry of interest in biotech stocks like INO stock.
Already putting on an impressive showing for 2020, INO stock popped in a big way this week. After closing at $15.30 on Monday, it is now above the $25 level.
What is going on with Inovio? I’ll explain what happened. And I’ll make the case that even at 16-year highs, INO stock should be in your portfolio.
An A-Rated Stock That Keeps Exceeding Expectations
Regular readers will know that I have been following this A-rated stock closely in 2020. Since the coronavirus pandemic began, Inovio has been on my radar. Especially since late April, when the company’s Phase 1 U.S. Trial of its INO-4800 vaccine for COVID-19 began human trials.
With the country still slowly emerging from lockdown, record unemployment, a gutted travel industry, and the prospect of a second wave, the importance of a COVID-19 vaccine can’t be underestimated. Neither can the implications for INO stock should Inovio’s vaccine be the one that makes the cut.
On May 19, I wrote that INO is “… a fast-moving, high-growth asset.” At that point, Inovio stock had posted massive 354% growth in 2020. On May 26, I said: “… when it comes to Inovio, the data suggests the possibility of better and faster progress towards a vaccine for this unfortunate disease, along with powerful moves in INO stock.” Shares closed at $14.46 that day.
INO had slipped below $12 on June 5, when I urged investors to hang on, and not take profits on the stock. Last week — with INO back above $14 — I was still bullish about the stock’s prospects, ranking it as a “strong buy.”
Today, just over a week after I wrote that last post, Inovio stock is soaring.
Why the Huge Gains This Week?
INO stock closed at $15.30 on Monday. It was once again closing on $15.79, its 2020 record close and INO’s highest value since 2007.
Then the company announced that it had been awarded a $71 million contract by the U.S. Department of Defense.
The government is investing to scale up production of Inovio’s proprietary CELLECTRA 3PSP and CELLECTRA 2000 devices. These portable devices are used to deliver the company’s INO-4800 COVID-19 vaccine directly into the skin. No syringes required. The CELLECTRA units run on standard AA batteries, they’re designed to function under extreme conditions, and can be safely stockpiled.
In a press release announcing the news, Inovio explained the importance of the win:
This next generation smart device leverages the efficacy delivery and safety track record of an earlier version that has received CE mark certification and has been used in clinical trials to safely dose more than 2,000 patients in over 7,000 administrations of INOVIO’s DNA medicines. The current DoD contract further supports INOVIO’s large-scale production of devices and arrays to deliver potentially hundreds of millions of doses of INO-4800 next year to combat the global COVID-19 pandemic.
Since the announcement, INO stock has flirted with $25, gaining around 60%.
Bottom Line on INO Stock
Inovio Pharmaceuticals gets an A-rating on my Portfolio Grader for a good reason. Its spectacular growth so far in 2020 shows it is on the kind of trajectory one seldom comes across. The race for a coronavirus vaccine is a big part of that, of course. INO joins other notable companies like iBioPharma (NYSE:IBIO) on my list of “7 Top-Rated Biotech Stocks to Buy on the Hunt for a Vaccine” because of that.
Monday’s announcement and the market reaction to that news is a taste of just how big the discovery of a proven, approved coronavirus vaccine would be.
While the coronavirus research is important, this company doesn’t have everything riding on COVID-19. For example, last month the company announced successful trials of its DNA therapy in treating the deadly brain cancer glioblastoma multiforme. Its VGX-3100 DNA treatment is also in phase 2 testing for treatment of HPV-caused cancers. INO also has a prostate cancer treatment undergoing clinical trials.
In other words, a successful COVID-19 vaccine would be huge for this company. But it’s far from a one-trick pony. Even with the coronavirus out of the equation, INO stock is positioning itself for long-term growth.
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.
