When I last wrote in this space two weeks ago about Inovio Pharmaceuticals (NASDAQ:INO) stock, I advised my readers not to rush in taking their profits. After all, Inovio was trading at just $3 per share at the beginning of the year.
If you took my advice from that June 5 column, you’d be sitting on a nice little return today — INO stock is up more than 16% since those words were written, and I’m still bullish about the prospects of Inovio.
In short, my strong buy call for Inovio hasn’t changed at all. It’s still an A-rated stock in my Portfolio Grader right now and it is one of the best high-growth biotech stocks you can buy today.
A Closer Look at INO Stock
Inovio is among those involved in the race to develop a vaccine for the novel coronavirus, which at this point is responsible for 2.14 million confirmed cases in the U.S. and nearly 7.7 million around the world. There have been 428,000 deaths attributed to Covid-19, with more than 117,000 of those in the U.S.
Perhaps even more concerning is that many U.S. states are seeing an uptick in illnesses and hospitalizations from Covid-19. Many of the states seeing an increase are among those that were the first to reopen their economies, or were not as aggressive as others in promoting social distancing and stay-at-home orders.
The increase in illnesses gives more urgency for a coronavirus vaccine. Inovio’s candidate, known as INO-4800, had some potentially positive results from a recent research study.
Earlier this month, Inovio announced the start of a Phase 1/2 clinical trial of INO-4800 in South Korea. The trial is being done in conjunction with the International Vaccine Institute and Seoul National University Hospital.
As a nod to the urgency of the vaccine work, Inovio notes that the clinical trial is being done just two months after a similar study began in the U.S., in Pennsylvania and Kansas City, Missouri. Data from that trial is expected at the end of this month, with Phase 2/3 trials in the U.S. to take place in July and August.
Professor Myung Don Oh of SNU Hospital is leading the South Korea trial, which is expected to begin this month. In the first stage, the trials will assess INO-4800’s effectiveness in 40 adults age 19 to 50. The test will then expand to enroll another 120 subjects, ranging in age from 19 to 64.
“Social distancing is making life challenging in all different aspects of our society including business, education, culture, sports, and international exchange, and we have reached a point where we cannot utilize social distancing further … We have to return to normalcy and today’s launch of the vaccine clinical trial will provide significant momentum in easing fears over the pandemic and helping return to normalcy.”
Inovio plans to have 1 million doses of INO-4800 manufactured by the end of the year. If its treatment is approved by the Food and Drug Administration as a coronavirus vaccine, INO stock could soar.
The Bottom Line for Inovio
Inovio is impressive because it’s a fast mover in the race to find a vaccine for Covid-19. Inovio is already well-regarded in the scientific arena because it has a strong track record of identifying possible solutions and treatments to infectious diseases.
Its high-grade DNA-manufacturing capabilities at the company’s leading-edge clinical research lab in San Francisco will help it mass-produce a vaccine if — or when — it’s approved.
Inovio had $89.5 million in cash and short-term investments at the end of 2019 and secured another $208.2 million in new financing in the first quarter. Cash flow should not be a problem as the company continues its aggressive testing and production schedule.
Inovio is a strong contender to supply and mass-produce a coronavirus vaccine and that makes it a strong buy right now.
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.
