TipRanks

Notifications

Is Inovio Stock a Buy Right Now? This Is What You Need to Know

Inovio Pharmaceuticals (INO) has been playing catch up in the Covid-19 vaccine race for a while now. One of the early frontrunners, the biotech has been unable to get its DNA Covid-19 vaccine INO-4800 to Phase 3 testing yet.

However, Oppenheimer’s Hartaj Singh thinks the latest update should change all that.

Earlier this week, Inovio released data from the Phase 2 clinical trial which showed the vaccine was safe and also triggered antibody titers in around 400 adult patients.

“The reported INO-4800’s P2 binding/neutralizing antibody/T-cell response data are good enough to advance into a P3 trial,” the analyst said. “While efficacy is the most key aspect for a COVID vaccine, we believe INO-4800’s high product stability (no need for cold chain storage/transport) is also vital, especially for the developing world and certain tropical areas. Safety/tolerability profile (AEs does not worsen upon 2-nd dose) also differentiates INO-4800.”

Inovio has run into a brick wall with the vaccine’s development in U.S. as the FDA has still not approved the Phase 3 portion. Additionally, the DoD (Department of Defence) recently announced it will no longer provide funding for the late-stage study. But Inovio intends to commence with further testing abroad and has said it is “committed to initiate its global P3 trial as quickly as possible.” Singh thinks the trials should begin “around this summer.”

The latest data has only increased Singh’s “conviction,” and the analyst highlights the fact that other Covid-19 vaccines which reported positive Phase 1 and 2 outcomes tend to “also work in P3.”

Moreover, as the commercial focus has shifted from the U.S. to the international stage, Singh thinks there could be “opportunities to secure some advanced purchasing agreements as INO-4800’s P3 starts.” The analyst signs off by telling investors to “buy on weakness of INO’s stock.”

Overall, Singh is Wall Street’s most prominent INO bull; his $35 price target indicates upside potential of 434%. Unsurprisingly, the analyst’s rating is an Outperform (i.e. Buy). (To watch Singh’s track record, click here)

Looking at the rest of the Street’s take, the ratings breakdown to 5 Holds vs. 2 Buys, giving the stock a Moderate Buy consensus rating. The analysts have a bullish average price target; at $14.5, the shares are expected to appreciate by 122% over the next 12 months. (See Inovio stock analysis on TipRanks)

To find good ideas for healthcare stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

Marty Shtrubel
Marty Shtrubel was born in the UK, raised in Israel, and then headed back to London, where he made music and pursued a career in sound recording. After a move back to Tel Aviv, he set off on a new path and now works as a financial blogger at TipRanks.