Oppenheimer maintains Outperform rating on Inovio stock amid FDA approval for competitor

Published 20/08/2025, 13:02
Oppenheimer maintains Outperform rating on Inovio stock amid FDA approval for competitor

Investing.com - Oppenheimer has reiterated an Outperform rating and $13.00 price target on Inovio Pharmaceuticals (NASDAQ:INO) following the FDA approval of a competing therapy for recurrent respiratory papillomatosis (RRP). According to InvestingPro data, this target represents significant upside potential, with four analysts recently revising their earnings expectations upward for the upcoming period.

The FDA approved Precigen (NASDAQ:PGEN)’s Papzimeos (formerly PRGN-2012) on August 15, ahead of its August 27 PDUFA date, making it the first approved immunotherapy for RRP. The news has sparked investor interest, with Inovio’s stock posting a strong 14% return over the past week.

Oppenheimer views this development as providing favorable implications for Inovio’s INO-3107, which is currently advancing toward BLA submission with expected FDA acceptance by year-end 2025.

The approval of Papzimeos based on a single-arm study alleviates concerns about FDA approvability for similar approaches, suggesting a potential pathway for full approval of INO-3107.

Despite Inovio trailing approximately one year behind Papzimeos in the regulatory process, Oppenheimer continues to view INO-3107’s differentiating features as providing an attractive setup for the company. InvestingPro analysis shows the company maintains a healthy balance sheet with more cash than debt, though investors should note rapid cash burn rates. Get detailed insights and 12 additional ProTips with an InvestingPro subscription.

In other recent news, Inovio Pharmaceuticals reported a significant reduction in losses for the second quarter of 2025, with operating expenses decreasing by 31% and the net loss per share nearly halved. This development aligns with both JMP Securities’ and consensus estimates. JMP Securities has reiterated its Market Outperform rating with a $12.00 price target, highlighting that Inovio is on track to complete its Biologics License Application by the end of 2025. Additionally, Jefferies has adjusted its price target for Inovio to $1.80 from $2.00, maintaining a Buy rating. The company is focusing on advancing its ’3107 product for Recurrent Respiratory Papillomatosis, with expectations to begin a rolling submission in the second half of 2025. Current funding is anticipated to sustain Inovio’s operations into the second quarter of 2026. These recent developments reflect ongoing strategic efforts by Inovio Pharmaceuticals to enhance its financial standing and operational capabilities.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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