Please ensure Javascript is enabled for purposes of website accessibility

Why Inovio Pharmaceuticals Stock Soared Today

By Keith Speights - Mar 27, 2020 at 2:21PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Investors like the biotech's good news from a phase 2 clinical trial.

What happened

Shares of Inovio Pharmaceuticals (INO 6.91%) were soaring 13.4% higher as of 3:10 p.m. EDT on Friday. The big jump came after Inovio reported positive interim results on Thursday from a phase 2 clinical study evaluating experimental drug VGX-3100 in treating patients with anal dysplasia, a precancerous condition caused by human papillomavirus (HPV). 

So what

Positive clinical results nearly always boost biotech stocks, especially for companies like Inovio that don't have approved products yet. And the phase 2 results for VGX-3100 were definitely encouraging. Half of the 20 patients in the study showed clearance of precancerous lesions associated with HPV types 16/18. Fifteen patients (75%) had an overall decrease in the number of lesions six months after beginning treatment with VGX-3100.

Healthcare professional wearing gloves and holding a syringe with a vaccine bottle

Image source: Getty Images.

Investors also no doubt view the results for VGX-3100 in the phase 2 study for anal dysplasia as boding well for the drug's chances in a late-stage study targeting cervical dysplasia. These results are also potentially promising for another phase 2 study of the drug in treating HPV-related vulvar dysplasia.

Now what

It's important to keep in mind that the results Inovio announced on Thursday were only interim results. The phase 2 study is still under way and won't wrap up until next year. 

There are a couple of other key developments to watch, though. Inovio expects to report top-line data from its Reveal 1 late-stage study evaluating VGX-3100 in treating cervical dysplasia by the fourth quarter of 2020. The biotech is also developing an experimental vaccine for protecting against novel coronavirus disease COVID-19. Inovio hopes to begin clinical testing of the vaccine in April.

Keith Speights has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Inovio Pharmaceuticals, Inc. Stock Quote
Inovio Pharmaceuticals, Inc.
INO
$2.63 (6.91%) $0.17

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
400%
 
S&P 500 Returns
128%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/13/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.