Inovio Analyst Watches Coronavirus Play 'From The Sidelines'

Coronavirus vaccine play Inovio Pharmaceuticals Inc INO is not an outright buy at this point in time, according to an analyst at Piper Sandler.

The Inovio Analyst

Christopher Raymond maintained a Neutral rating on Inovio shares with an $8 price target. 

The Inovio Thesis

The 12-month overall survival data Inovio presented for its DNA cancer vaccine INO-5401 in glioblastoma multiforme — a deadly form of brain cancer — at the ASCO made the benefit less clear, Raymond said in a Monday note. (See his track record here.) 

The vaccine is being studied in a Phase 2 single-arm study in newly diagnosed GBM patients following gross total resection and in combo with radiotherapy, temozolomide and Regeneron Pharmaceuticals Inc's REGN Libtayo, he said. 

"While the data have demonstrated that a subset of patients had a T cell response to treatment, there is still uncertainty over INO-5401's individual therapeutic benefit." 

Longer-term and randomized data for the vaccine would help Piper Sandler feel more confident in the program, Raymond said.

An overall survival update due later this year is a key catalyst for the program, the analyst said. Given the uncertainty, he said INO-5401 remains an unmodeled opportunity at this point.

Piper Sandler sees several upcoming catalysts for Inovio, including first-in-human data from INO-4800 due later this month and an update on potential funding for the program to support further development.

"However, given the ongoing volatility surrounding this name over COVID-19 efforts, we prefer to watch this story play out from the sidelines," Raymond said. 

INO Price Action

At last check, Inovio shares were down 5.85% at $13.99. 

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