Based on management’s projections and analysis, the Company believes that cash and short-term investments meet its planned working capital requirements through the end of 2018.
With Inovio not having any approved product in its portfolio, investor focus remains on pipeline updates. Its lead experimental product, VGX-3100, indicated for cervical dysplasia, is only now entering a late-stage study.
AstraZeneca said on Monday its MedImmune biotech unit would study INO-3112 in combination with other immunotherapy drugs.
Inovio’s track record has been disappointing with the company recording negative earnings surprises in three of the four trailing quarters with an average negative surprise of 100.21%.
While earnings proved to be positive, the bigger story today revolves around a deal that Inovio Pharmaceuticals made with MedImmune. Finally, Maxim Group reiterated a “buy” rating and issued a $20.00 price target on shares of Inovio Pharmaceuticals in a report on Friday, July 24th.
Top-Line Revenue – Top line revenue for the second quarter and first six months of 2015 both came in well above analyst expectations. The business earned $5.30 million during the quarter, compared to the consensus estimate of $5.52 million. The Biotechnology company is now valued at $0.47 billion and its share price closed the last trading session at $6.49. “VGX-3100 should still start Phase 3 in early 2016”.
“Our licensing partnership with MedImmune represents an important step in executing our immuno-oncology combination strategy and advancing Inovio’s cancer vaccine R&D pipeline with a leading cancer immunotherapy company”, stated J. Joseph Kim, PhD, president and CEO of Inovio, in a press release. INO-3112 is designed to work by generating killer T-cell responses that are able to destroy HPV 16- and 18-driven tumors, which are believed responsible for more than 70% of cervical precancers and cancers.
MedImmue will make an upfront payment of $27.5m to Inovio as well as potential future payments upon reaching development and commercial milestones totalling up to $700m. Here’s what we saw from the earnings report…