Stifle analysts cut their share price target for Inovio Pharmaceuticals Inc. INO,
to $ 16 from $ 24 on Tuesday, after the company posted a broader-than-expected second-quarter loss and revenue that fell short of estimate. Inovio is one of many companies working on developing a COVID-19 vaccine candidate. The figures and the call “left us (again) with more questions than answers on various fronts,” analysts led by Stephen Willey wrote in a note to clients. These include timeless disclosure for the trial of the company’s COVID-19 vaccine candidate, INO-4800. The company said it was expanding a 40-patient early-stage clinical trial by another 80 participants and that most patients showed an immunological response to the vaccine, either by reaching binding antibodies, neutralizing antibodies or T- cell responses. “Our reluctance to attribute any INO-4800-related value to our model continues and our previously reduced discount rate (9%) reflects improved perception again: the chance of third-party financing,” the note said. “We believe that these persistent questions, coupled with an acceleration of the competitive development landscape (and difficult to overcome immunogenicity barriers), are forcing us to reconsider that assumption (+ 250 bps).” The company reported a second-quarter loss of $ 128.7 million, or 83 cents a share, compared to a loss of $ 29.4 million, or 30 cents a share, in the period last year. Revenue rose to about $ 267,000 from about $ 136,000 in the annual quarter. Analysts surveyed by FactSet had forecast a loss of 17 cents a share on revenue of $ 2.6 million. Shares were down 8% in the premier trade on Tuesday, but have gained 475% in the year to date, while the S&P 500 SPX,
has received 4%.
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