The first time I highlighted opportunity in Inovio Pharmaceuticals (NASDAQ:INO), it traded at just $4.86 a share. That was in late January.
By July, the INO stock was up to $27 – a 456% gain in just months.
From there, I said the INO stock could rally to $30.
But that never happened. Instead, the stock was more than cut in half to $12 a share.
All after Inovio Pharmaceuticals posted a bigger than expected quarterly net loss of 83 cents, and offered little update on its coronavirus vaccine candidate. To top it off, Stifel analyst Stephen Willey cut his price target on the INO stock to $16 from $24.
In addition, according to Willey, Inovio’s vaccine news left him “with more questions than answers on numerous fronts…We believe these lingering questions, coupled with an acceleration of the competitive development landscape (and difficult-to-beat immunogenicity hurdles), forces us to revisit that assumption.”
From here, while I’d like to say the INO could rocket higher again, sit tight
With the pandemic raging, shares of INO were up as much as 1,210% from its 2019 low.
All thanks to positive news about funding and preliminary data. However, in recent weeks, the Inovio stock has become a slow motion train wreck. So far, it hasn’t provided substantial details on the progress of INO-4800. Without that, no one has any idea if the vaccine still has a foot in the race.
Worse, “while the company has said that it is part of Operation Warp Speed — the flagship federal effort to quickly produce treatments and vaccines for the coronavirus — Inovio is not on the list of companies selected to receive financial support to mass-produce vaccines,” as reported by The New York Times’ contributors David Gelles and Heather Murphy.
It also comes as no surprise that many analysts have become skeptical on the INO stock, too.
As Investorplace contributor Lou Carlozo noted:
“Inovio is bullish on itself and its vaccine. But analysts are not bullish on Inovio, and any of the other companies racing to develop a Covid-19 vaccine weren’t exactly polled for their thoughts. Citron, meanwhile, points out: “It’s been over 40 years since Inovio was founded, yet the company has NEVER [their caps] brought a product to market, and all the while insiders have enriched themselves with hefty salaries and large stock sales.”
INO-4800 Results Look Promising but Key Data is Missing
In a press release, Inovio noted that 94% (34 out of 36 trial participants demonstrated overall immunological response rates. However, according to STAT News’ contributor Damian Garde, the company never disclosed “how many patients produced antibodies that neutralize the coronavirus — data key to determining whether the vaccine could protect against infection.”
At the same time, Inovio did say it would publish all data in a peer-reviewed medical journal.
That was around June. As of an August 10, the data is still “under-going peer review for publication at a top medical journal.” Hopefully, we’ll see the data sooner rather than later. If not, the INO stock could sink even more from lofty highs.
The Bottom Line on Inovio Pharmaceuticals’ Stock
The first time I highlighted opportunity in Inovio Pharmaceuticals (NASDAQ:INO), it traded at just $4.86 a share. That was in late January.
By July, the INO stock was up to $27 – a 456% gain in just months.
Unfortunately, the stock was more than cut in half because of a lack of news, price target downgrades, earnings, and some distrust. However, there’s hope that we’ll see far more trial on INO-4800 to ensure INO still has a foot in the race.
If not, Inovio Pharmaceuticals stock could sink well below $10 a share – and fast.
On the date of publication, Ian Cooper did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Ian Cooper, an InvestorPlace.com contributor, has been analyzing stocks and options for web-based advisories since 1999.
