Inovio Pharmaceuticals Inc INO failed to inspire confidence among investors despite revealing in its second-quarter earnings report that it is on track for a September start for a Phase 2/3 clinical study of its developmental DNA coronavirus vaccine.
The Inovio Analyst: Cantor Fitzgerald analyst Charles Duncan reiterated an Overweight rating on Inovio shares and reduced the price target from $45 to $31.
The Inovio Thesis: Inovio's planned Phase 3 study in at-risk volunteers with an assumed higher case rate — although encouraging — poses greater execution risk and mounting competition for clinical trial resources and in-market demand, given the progress made by other vaccine developers, Duncan said in a Tuesday note. (See his track record here.)
Cantor is taking a conservative stance and reduced its estimate for Inovio's number of doses sold in 2022-2026, the analyst said.
Given Inovio's quarter-end cash position of $372 million, there is likely to be sufficient funding into 2023, with a bevy of potential pipeline milestones, he said.
The 94% responder rate for the INO-4800 vaccine in the Phase 1 study and qualitative characterization of the composition of immune responses warrant movement of the investigational vaccine into a Phase 2/3 efficacy study, Duncan said.
The analyst said he expects patient enrollment in the study to occur during the summer or early fall.
The proposed Phase 2/3 study is likely to enroll health care workers, first responders and persons in other occupations that place them at higher risk of COVID-19 infection, he said.
The size and the speed of the study will depend on several factors, including the viral attack rate, Duncan said.
The Rest Of Inovio's Pipeline: Inovio's other upcoming catalysts include two key data readouts from the Phase 3 REVEAL-1 and REVEAL-2 clinical studies of VGX-3100 in cervical dysplasia, the analyst said.
The company is also expected to release 18-month overall survival data from INO-5401/INO-9012/checkpoint inhibitor in glioblastoma multiforme and data from the Phase 2 study of MEDI-0457 in combination with durvalumab for metastatic HPV-related squamous cell carcinoma of the head and neck, according to Cantor Fitzgerald.
INO Price Action: Inovio shares ended Tuesday's session down 23.01% at $14.62.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on Bankrate.com. The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.
All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the Bankrate.com rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.
Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.
Rate collection and criteria: Click here for more information on rate collection and criteria.