A ruling by the Food and Drug Administration (FDA) that prevented Inovio Pharmaceuticals (INO) from testing its Covid vaccine in the United States was overturned, and INO shares soared.
To complement its Covid vaccination, Inovio is developing a vaccine-device combo. With the lifting of the partial clinical hold, the biotech business will be able to commence a Phase 3 trial of its regimen in the United States. To undertake final-phase testing in the Americas, Asia, and Africa, among other locations, Inovio has created a relationship with Advaccine Biopharmaceuticals Suzhou, which is located in China. In addition, the business is working on a new vaccine that will target a severely mutated strain of the virus known as omicron.
Previously, the Department of Defense of the United States withdrew its support for final-phase testing. INO stock soared recently after the business dosed the first participant in a research to test a vaccine against the Middle East Respiratory Syndrome, often known as MERS, according to the company. A coronavirus is responsible for the sickness. It is more lethal than Covid, despite the fact that it is significantly less prevalent.
However, Inovio’s third-quarter sales fell short of expectations in November. Inovio’s stock is presently trading for less than ten dollars a share. The firm is developing medications for cancer and infectious disorders, which are currently in the pipeline. In cash, non-cash equivalents, and short-term investments as of Sept. 30, the company’s cash and short-term investments have decreased by more than 4% since December 2020.
Is it better to purchase or sell INO stock in the end?
An Examination of the Fundamentals of the INO Stock
The fact that Inovio is not profitable and plans to continue to incur losses in the foreseeable future should be noted first. Inovio reported a 29-cent loss per share and $292,000 in sales for the third quarter of fiscal year 2015. Sales fell short of expectations, although losses were smaller than predicted.
Additionally, it should be noted that Inovio does not have a commercially authorized medication available for purchase. It was established in 1983, although its DNA research goes back to 2000. Its income is derived from funds allocated for cooperation and development. AstraZeneca (AZN) and Regeneron Pharmaceuticals (REGN) are two of the biotech company’s major biopharma partners, respectively (REGN).
If Inovio is successful in developing a safe and effective coronavirus vaccine, the company’s revenue outlook might drastically shift. The biotech company is also developing a medication for the treatment of a precancerous disease of the cervix that is now in Phase 3 testing. On that medicine, it has a collaboration with the privately owned ApolloBio.
However, INO stock does not comply with the CAN SLIM guidelines for investing in growth firms. Companies with recent profit growth of at least 20 percent to 25 percent should be sought after by savvy investors. It is not predicted that Inovio stock will reach that level anytime soon. (To learn more about IBD Digital and get CAN SLIM stock investment ideas, visit their website.)
Inovio is expected to post a 32-cent loss per share on $2.3 million in sales in the fourth quarter, according to FactSet’s poll of analysts. The company’s revenue would soar. Losses, on the other hand, would soar.
Currently, the stock of INO has a Composite Rating of 21 out of a maximum potential score of 100. The Composite Rating is a one-to-nine scale that analyzes the important fundamental and technical growth characteristics of a company. In terms of that criteria, Inovio stock outperforms 21 percent of all other equities, according to the data.
In 2020, the biotech reported a loss of $1.07 per share on sales of $7.4 million. Sales increased year over year, but losses decreased. Inovio is expected to lose $1.25 per share in 2021 on revenues of $3.1 million, according to FactSet’s poll of industry experts.
Background of Inovio Stock
Inovio was formerly known by the moniker Genetronics when it was created in 1983. At the time, it was primarily concerned with a technology platform known as electroporation. Electroporation is the process of creating holes in cells by utilizing regulated electrical pulses. As a result, they should be more permeable to medicines and other agents, according to hypothesis. Genetronics then concentrated on the development of medications for cancer and dermatitis. According to the company’s initial filing with the Securities and Exchange Commission of the United States, it also created devices for electroporation that it sold to research firms.
Genetics was a publicly traded business that had its shares traded on the Vancouver Stock Exchange, the New York Stock Exchange, as well as the Toronto Stock Exchange, in the early 1990s. It voluntarily withdrew from the Vancouver stock market in 1998, citing financial reasons. It stayed on the Toronto Stock Exchange until 2003, when it was delisted.
Two years later, Genetronics bought the gene therapy business Inovio AS, which was renamed Inovio Biomedical after the acquisition. Inovio was required to restate portions of its financial statements in 2006 and 2007. Inovio Pharmaceuticals merged with VGX Pharmaceuticals in 2009. As a result, the company’s pipeline now includes a cancer vaccine. Inovio Biomedical was renamed Inovio Pharmaceuticals a year after it was founded.
INO Stock Technical Analysis
After receiving a $71 million contract from the US Department of Defense to ramp up production for its coronavirus vaccine, Inovio shares reached a high of 33.79 in June 2020. However, once the agency pulled funding for Phase 3 testing in April, the stock collapsed.
INO stock soared 168 percent higher in 2020, despite starting the year at only 3.30. The biopharmaceutical business now has an IBD Digital Relative Strength Rating of 17, indicating that it outperformed 17 percent of stocks in the previous year. The company has also restored to the status of a dollar stock, trading about $7.20 on December 1.
Is Inovio Stock a Good Investment Right Now?
As of December 1, INO stock was not a buy. In technical analysis, the shares aren’t generating any special chart patterns, and they aren’t exhibiting the characteristics of successful firms, such as rapid increase in sales and profits.
When a stock reaches the top of a buy point and is less than 5 percent stretched from the entry point, investors are advised to purchase it. (See if there are any stocks near a buy zone.) Furthermore, the Composite and RS Ratings for Inovio are also low. Its earnings per share (EPS) rating has improved somewhat, but it still falls below the top tier of equities.
For the time being, the most essential thing to do is keep an eye on INO stock while the biotech business attempts to get back on track with the development of a coronavirus vaccine. Its DNA-based method varies from conventional vaccinations as well as from the more recent messenger RNA-based strategy.
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