Inovio stock holds firm with $18 target from JMP Securities

On Friday, JMP Securities maintained a positive stance on Inovio Pharmaceuticals (NASDAQ:INO), reiterating its Market Outperform rating and a price target of $18.00. The target represents significant upside potential from the current price of $1.93, though the stock has faced challenges, declining over 71% in the past six months. According to InvestingPro data, analyst targets for the stock range from $3.00 to $18.00. The endorsement comes as Inovio publicized the publication of a study detailing its DNA-encoded monoclonal antibody (DMAb) platform. According to JMP Securities analyst Roy Buchanan, this platform has demonstrated a high success rate in producing antibodies that protect against COVID-19, specifically referencing Evusheld.

Buchanan highlighted the durability of the antibody expression, which was observed to last up to 72 weeks. He noted the significance of this research, pointing out that the technology could extend its applications beyond antibodies to potentially include therapeutic proteins effective at very low blood concentrations. While the company maintains a strong liquidity position with a current ratio of 3.88 and more cash than debt on its balance sheet, InvestingPro analysis indicates the company is currently burning through cash rapidly.

In addition to the publication, Inovio has announced that it will release its full-year 2024 financial results on March 18, after the market closes. Buchanan expressed particular interest in the company’s progress with INO-3107, anticipating the near-term submission of a Biologics License Application (BLA) for this treatment.

The analyst’s remarks underscore the potential of Inovio’s proprietary technology in contributing to long-term COVID-19 protection strategies and possibly other therapeutic areas. Investors will be closely watching the upcoming financial report for further insights into the company’s performance and strategic direction. InvestingPro subscribers can access 12 additional key insights about Inovio, including detailed financial health metrics and growth prospects, through the comprehensive Pro Research Report available exclusively on the platform.

In other recent news, INOVIO has reported promising results from a Phase 1/2 clinical trial of its investigational DNA medicine, INO-3107, aimed at treating recurrent respiratory papillomatosis (RRP). The study, published in Nature Communications, involved 32 patients and showed that 81% of participants required fewer surgeries after treatment compared to the previous year. Notably, 26 patients experienced a reduction in surgical interventions, with 9 patients not needing any further surgeries during or after the treatment period. The treatment was well-tolerated, with the most common side effects being injection site pain and fatigue, none of which exceeded Grade 2 severity. INO-3107 works by inducing T cell responses against HPV-6 and HPV-11, the viruses responsible for RRP, and has demonstrated potential in preventing or slowing the growth of new papillomas. INOVIO plans to submit a biologics license application for INO-3107 in mid-2025, seeking accelerated approval from the FDA. If approved, INO-3107 would be the first DNA medicine authorized for use in the United States. The FDA has already granted INO-3107 Orphan Drug and Breakthrough Therapy designations, highlighting its potential significance in treating RRP.

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