Inovio's Zika Vaccine To Enter Human Trial Period Very Soon; H.C. Wainwright Reiterates Buy

Inovio Pharmaceuticals Inc INO and its partner GeneOne Life Science announced that the FDA had granted approval of its IND to initiate a Phase 1 trial of its Zika virus DNA vaccine [GLS-5700] to prevent infection.

H.C. Wainwright’s Raghuram Selvaraju reiterated a Buy rating for the company, with a price target of $17.

Related Link: Jefferies Likes Hologic For Zika, But Sees Blood Screening As Larger Opportunity

Human Trial Commencing for Zika Vaccine

The Phase 1 study is the “first-ever human trial of a preventive vaccine targeting the Zika virus,” Selvaraju noted. The study is expected to begin in the coming weeks and is designed to evaluate the safety, tolerability and immunogenicity of GLS-5700 administered intradermally with Inovio’s proprietary DNA delivery device, Cellectra®.

“Investors may recall that GLS-5700 induced robust antibody and T cell responses in small and large animal models in preclinical studies. In addition, based on the benign safety profiles demonstrated by the company’s investigative DNA vaccines in human trials such as Ebola and MERS vaccines, we believe that GLS-5700 is likely to show similar safety attributes in this upcoming study,” Selvaraju wrote.

The analyst added that the company has enough capital to complete the study, and results from the Phase 1 trial are expected by the end of 2016. Inovio could potentially commence a Phase 2 study in 2017.