Piper Sandler initiates Inovio Pharmaceuticals stock with Overweight rating

Published 09/07/2025, 10:28
Piper Sandler initiates Inovio Pharmaceuticals stock with Overweight rating

Investing.com - Piper Sandler initiated coverage on Inovio Pharmaceuticals (NASDAQ:INO) with an Overweight rating and a $5.00 price target. The stock, currently trading near its 52-week low of $1.30, has declined over 37% in the past week alone. According to InvestingPro analysis, the stock is currently undervalued based on its Fair Value metrics.

The research firm cited Inovio’s development of DNA-encoded medicines targeting cancer, infectious and rare diseases as the basis for its positive outlook.

Piper Sandler highlighted INO-3107, Inovio’s immunotherapy treatment for recurrent respiratory papillomatosis (RRP) caused by human papillomavirus. In the Phase I/II RRP-001 study, the treatment demonstrated strong clinical efficacy with 81% of patients requiring fewer surgeries and 28% needing no surgeries in the year following treatment.

Inovio expects to complete its rolling Biologics License Application submission to the FDA in the second half of 2025, with potential accelerated approval by mid-2026 and a U.S. launch in the second half of 2026.

The company ended the first quarter of 2025 with $68.4 million in cash and subsequently raised $25 million by issuing 14.286 million units at $1.75 each, giving it an estimated pro forma cash position of approximately $71 million that should fund operations into the second quarter of 2026.

In other recent news, Inovio Pharmaceuticals has announced a $25 million public offering of common stock and warrants, with the offering priced at $1.75 per share. Piper Sandler & Co. is serving as the sole active book-running manager, and the offering is expected to close around July 7, 2025, subject to customary closing conditions. The company has also granted underwriters a 30-day option to purchase additional shares and warrants. Inovio recently held its 2025 Annual Meeting of Stockholders, where all board nominees and proposals were approved, including the ratification of Ernst & Young LLP as the independent auditor for 2025.

Additionally, Oppenheimer has adjusted its price target for Inovio shares to $13 from $15 while maintaining an Outperform rating. Inovio reported first-quarter financial results for 2025, with operating expenses of $25.1 million and a cash balance of $68.4 million, which is expected to sustain operations into the first quarter of 2026. The company is moving forward with its Biologics License Application for INO-3107, anticipated to be completed in the second half of 2025. Despite the revised price target, Oppenheimer remains optimistic about Inovio’s prospects, particularly regarding INO-3107’s commercial potential.

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