According to H.C. Wainwright's Aug. 9, 2017 research report, Inovio Pharmaceuticals Inc. (INO:NASDAQ) exited Q2/17 with $92 million in cash. It has closed a public offering that yielded $70.5 million, which "would be used for general corporate purposes, including clinical trial expenses," according to Selvaraju. "We estimate that the company's pro forma cash position after the offering should be sufficient to fund at least 18 months of operations."
Inovio reported top-line quarterly revenues of $20.4 million, "handily beating our original projection of only $6.7M," wrote the analyst. "This was primarily driven by the recognition of $13.8M in revenue from MedImmune," Selvaraju explained. "This revenue recognition occurred upon MedImmune's definitive selection of a new cancer product candidate to be tested in clinical trials against an undisclosed cancer target from the two companies' ongoing research collaboration."
Selvaraju reminded investors of revenue expected from another corporate partnership, this one with ApolloBio, for development in China of Inovio's DNA-based, nonsurgical immunotherapy, VGX-3100. This deal "involves an upfront payment of $15M and an equity investment of $35M in Inovio common stock," he said.
The report also indicated patients are being recruited for REVEAL 1, a primary study, and REVEAL 2, a confirmatory study, of Inovio's VGX-3100 in the treatment of "HPV-16/18-related high-grade cervical dysplasia, or high-grade squamous intraepithelial lesions," Selvaraju wrote. "Each study is slated to enroll 198 patients in over 100 centers globally."
Selvaraju outlined the market timing and potential for commercialization of VGX-3100. "We currently project that the REVEAL program would take two years to complete and VGX-3100 could enter the market in late 2020, with peak global sales of approximately $1.2B in 2030," he said.
H.C. Wainwright reiterated its Buy rating and 12-month price target of $13 per share on Inovio. The stock is currently trading at around $5.43 per share.
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