Why Inovio Pharmaceuticals Inc Shares Temporarily Spiked

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Inovio Pharmaceuticals Inc (NASDAQ: INO  ) , a synthetic vaccine manufacturer with a focus on infectious diseases and cancer, spiked higher by as much as 19% after reporting positive preclinical results from its malaria DNA vaccine. Shares have since given up most of their gains and are up by just 3%.

So what: According to this morning's press release from Inovio, its SynCon DNA vaccine, which contains four malaria antigens and was delivered using its proprietary electroporation device known as Cellectra, demonstrated "strong and durable antibody and T-cell immune responses in small animals and non-human primates." Of particular interest is that researchers also found vaccine-induced CD8+ T-cells in the liver, which are particularly effective at wiping out a targeted disease. Inovio plans to initiate an early-stage trial of its vaccine sometime in 2014 utilizing approximately 30 patients.

Now what: Shares in Inovio have been nothing short of volatile lately as a slew of encouraging data and a poor earnings report have whipsawed shares violently. Today's new certainly can't be misconstrued as anything but good for Inovio shareholders; however, they would be wise to keep in mind that this was merely a preclinical study, and the vaccine could act completely differently once it begins being tested on human patients. As I've noted in recent weeks, Inovio has yet to deliver for shareholders over its three decades of research, and until such time as it does, I would suggest keeping to the sidelines.

The wild volatility in Inovio shares of late is the perfect reminder to us that the best investment strategy is to pick great companies and stick with them for the long term. The Motley Fool's free report "3 Stocks That Will Help You Retire Rich" not only shares stocks that could help you build long-term wealth, but also winning strategies that every investor should know. Click here to grab your free copy today.


Read/Post Comments (9) | Recommend This Article (5)

Comments from our Foolish Readers

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  • Report this Comment On August 15, 2013, at 2:04 PM, NYGuy01 wrote:

    To quote Ronald Reagan....there you go again. Bringing up irrelevant history. Prior to 2009 there was no advancement on the vaccine front, but the verification of their delivery method. If you took the time to look at their web page you would see that this is a whole new regime. Plenty of preclinical, Phase I and Phase II programs going on. Partnerships with creditable counter-parties.

    You state you have no interest in this company, yet you go out of your way to provide inaccurate information. You also speak about a "poor earnings report" that missed estimates only due to a non-cash valuation for adjustment of warrants as is required under GAAP and that people invested in development stage biotechs know that earnings are immaterial.

    You really should move on to something you know about, because clearly it is not Inovio.

  • Report this Comment On August 15, 2013, at 2:45 PM, aghast wrote:

    Sean, did you used to work for a garbage company.... the quality of your "publishing" suggests the same....

  • Report this Comment On August 15, 2013, at 3:25 PM, VJUANBS wrote:

    Typical garbage I have come to expect from this "writer" and this web site. Does PEER-REVIEWED mean anything to you?

  • Report this Comment On August 15, 2013, at 3:40 PM, intrial wrote:

    backfire...... look at todays closing.

  • Report this Comment On August 15, 2013, at 4:23 PM, jwebb0605 wrote:

    Misleading nonsense. Before their Stanley cup victory in the latter half of the nineties, the Detroit Red wings hadn't won a cup in several decades. Does that mean no one should have bet on them?

    Just like the Detroit Red Wings, Inovio has different players involved now, than decades ago. Their management team is top notch.

    New Investors or uninformed Investors, please do your DD. This is now the time to invest in Inovio (I am speaking as an investor, not a swing trader.

    Don't let this writer influence you into loosing bountiful gains in the coming couple years. Near term catalysts can happen anytime to make you a great deal of money for this year alone.

  • Report this Comment On August 15, 2013, at 11:41 PM, TruffelPig wrote:

    These articles are pretty much good for nothing. They do not provide more than headline info followed by some bla bla.

  • Report this Comment On August 16, 2013, at 8:57 AM, studham wrote:

    Prime example of shameful marketing... The article has no real if you are a true follower of the stock... All I see on the page is sign up here so we can give you more bad advice. I will keep to the sidelines even though there is a 'click here it is free' button in the middle of your article.

  • Report this Comment On August 17, 2013, at 1:52 PM, Dragonist wrote:

    This garbage article. The writter of this article needs to do some more research on the company before open his mouth. He probably held a short position of the stock or his friends family member. Here listen you trashy writter: Inovio was never got any vaccine advancement prior to 2009. Dr. Kim took office of Inovio and lead his team to research and inovation of the future vaccine using their patented Electroperation technology.

  • Report this Comment On September 30, 2013, at 9:36 AM, rianjones1983 wrote:

    So why should you be interested in Inovio as a current/potential shareholder?

    http://stks.co/qUbY

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