Where next for the Inovio Pharmaceuticals share price?
Shares of Inovio Pharmaceuticals continue to trade at a 20-year high, a week after the company announced US$71 million in funding from the government.
US drug manufacturer Inovio Pharmaceuticals Inc continues to create new share price records, as it extended a 20-year high on Monday 29 June 2020.
Inovio shares closed the day at a US$31.71 per share, representing an increase of US$1.90 from last week’s closing price, based on IG data. This is the stock’s highest bid price since September 2000.
The company’s share price is currently up 1.83% in pre-market trading as at 06:00 ET on Tuesday 30 June 2020.
Why did Inovio’s shares soar 95% in four days?
Inovio stocks skyrocketed over 95% last week, after it announced on Tuesday 23 June that it received a further US$71 million in funding from the US Department of Defense (DoD) to support the large-scale manufacture of its proprietary Cellectra 3PSP smart hand-held device.
The device is currently being used to deliver its Covid-19 vaccine candidate INO-4800 directly into the skin of patients as part of a domestic Phase 1 trial of the prevention drug which started in late-April.
The DoD contract builds upon two separate prior US$5 million grants from the Bill & Melinda Gates Foundation and the Coalition for Epidemic Preparedness Innovations.
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According to Inovio’s President and CEO J. Joseph Kim, the device could ‘deliver potentially hundreds of millions of doses of INO-4800 next year to combat the global Covid-19 pandemic’.
Interim results of the US Phase 1 clinical studies of INO-4800 will be published later this month, with a Phase 2/3 efficacy trial planned to begin in the next few months.
In the meantime, the company begun a two-stage trial of INO-4800 in South Korea earlier this month – the first clinical study of a Covid-19 vaccine in the country.
Where next for Inovio’s share price?
Until the trial results are announced, IG Asia market strategist Pan Jingyi wrote that while downsides appear unlikely for the stock at present, short-term price fluctuations are to be expected in the interim.
‘Much like any drug that goes through the key clinical trial stage, if the efficacy, safety and other issues comes into question, that could lead to a price reaction,’ Pan noted.
‘In this case for INO, which had fuelled high hopes of a Covid-19 development and seeing funding from (the) DoD, any disappointments could lead to a substitution effect with other vaccine developer candidates,’ she added.
From a technical standpoint, Pan posited that ‘an overbought situation certainly looks the case’ right now. However, with vaccine development widely expected to be a long-drawn process, ‘optimism here could support prices for the pool of vaccine developers awaiting breakthroughs,’ she concluded.
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