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.
Are you looking to buy long or sell short Inovio sharess? IG's CFD trading option allows you to do that. Sign up for an IG account today.
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.
How to trade Inovio shares with IG
With IG, you can trade on the world's best trading platform, and back whether you think Inovio Pharmaceutical's shares will rise or fall in value. Go long (buy) if you think they will increase in value, or go short (sell) if you think they will decrease in value.
To take a position, follow these simple steps:
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Please see important Research Disclaimer.
Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.
React to global volatility
Market volatility continues as coronavirus concerns amplify. Trade with IG and take advantage of:
- Tight spreads – from just 1 point on major indices, and 2.8 on US crude
- Guaranteed stops – they’re free to use, and only incur a fee when triggered
- Round-the-clock assistance – our highly skilled team are available when you need support
Live prices on most popular markets
- Forex
- Shares
- Indices
See more forex live prices
See more shares live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
See more indices live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.