Bullish indicating open at $55-$60, IPO prices at $37
On Wednesday, Citizens JMP adjusted its financial outlook for Inovio Pharmaceuticals (NASDAQ:INO), reducing the price target on the company’s shares to $12.00 from the previous $18.00. Despite this change, the firm maintained its Market Outperform rating for the biotechnology company. The stock, currently trading at $2.10, has seen a significant decline of over 80% in the past year, according to InvestingPro data.
Inovio Pharmaceuticals recently disclosed its financial results for the fourth quarter and full year of 2024, which slightly surpassed both Citizens JMP’s and the consensus estimates. This performance was attributed to lower-than-anticipated expenses. The company concluded the year with a cash reserve of $94 million and provided guidance indicating sufficient funds to continue operations into the first quarter of 2026. InvestingPro analysis shows the company maintains a healthy current ratio of 3.88, with liquid assets exceeding short-term obligations, though it’s worth noting the company is rapidly burning through its cash reserves.
The management team at Inovio expressed confidence that they have rectified the stability and manufacturing issues with their Cellectra device. This resolution is expected to support the potential acceptance of a Biologics License Application (BLA) by the end of the year for INO-3107, which is being developed to treat recurrent respiratory papillomatosis (RRP).
Citizens JMP analysts have a positive outlook on INO-3107’s prospects, anticipating that it will receive approval through a Priority Review process. The analysts also believe that Inovio is poised to secure a strong market position for INO-3107, bolstered by recent durability results that have shown improvement over a three-year period.
In other recent news, Inovio Pharmaceuticals reported a net loss of $19.4 million for the fourth quarter of 2024, translating to $0.65 per share, while the full-year net loss was $107.3 million, or $3.95 per share. Despite these losses, the company managed to reduce its operating expenses by 22% year-over-year, reflecting a strategic focus on cost management and key projects such as INO-3107 for Recurrent Respiratory Papillomatosis. Additionally, Inovio’s cash reserves, totaling $94.1 million as of Q4 2024, are projected to sustain operations into the first quarter of 2026. The company is advancing its DNA-encoded monoclonal antibody technology, with promising interim results from a Phase 1 trial involving antibodies targeting SARS-CoV-2. Looking ahead, Inovio plans to submit a Biologics License Application for INO-3107 by mid-2025, with FDA acceptance anticipated by the end of the year. The company has resolved previous manufacturing issues with its Selexa device, paving the way for further regulatory submissions. Inovio’s strategic initiatives and cost management efforts are aimed at transforming the company into a commercial-stage entity, focusing on its DNA medicines platform.
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