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Why Inovio Stock Is Sinking Today

By Keith Speights – Jun 10, 2021 at 11:46AM

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Investors appear to be taking some profits after yesterday's huge gain.

What happened

Shares of Inovio Pharmaceuticals (INO) were sinking 8.8% as of 11:13 a.m. EDT on Thursday. The company didn't announce any new developments, and today's sell-off appears to be due to investors taking profits after Inovio's shares jumped nearly 17% yesterday.

So what

Inovio did have big news on Wednesday that caused the biotech stock to soar. The company announced that it's partnering with Advaccine Biopharmaceuticals Suzhou to evaluate COVID-19 vaccine candidate INO-4800 in a global late-stage clinical study. Advaccine was already collaborating with Inovio to develop and market INO-4800 in the greater China market.

Stock chart with the coronavirus enclosed in an image of the Earth in the background.

Image source: Getty Images.

This expanded partnership was exactly what Inovio needed. The company had planned on financial assistance from the U.S. Department of Defense for a late-stage study of INO-4800. But in April, the Defense Department told Inovio that it wouldn't fund the phase 3 segment of the study because of "the changing environment of COVID-19 with the rapid deployment of vaccines."

It's not all that surprising that investors would engage in some profit-taking. Inovio's shares were up more than 40% over the last month as of the market close on Wednesday, including yesterday's big gain. 

Now what

Inovio and Advaccine plan to advance INO-4800 into the global late-stage study this summer. How Inovio's shares perform will depend on how well this trial goes.

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.

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