Inovio Analyst Watches Coronavirus Play ‘From The Sidelines’

Coronavirus vaccine play Inovio Pharmaceuticals Inc INO 5.15% is not an outright buy at this point in time, according to an analyst at Piper Sandler.

The Inovio Analyst

Christopher Raymond maintained a Neutral rating on Inovio shares with an $8 price target.

The Inovio Thesis

The 12-month overall survival data Inovio presented for its DNA cancer vaccine INO-5401 in glioblastoma multiforme — a deadly form of brain cancer — at the ASCO made the benefit less clear, Raymond said in a Monday note. (See his track record here.)
The vaccine is being studied in a Phase 2 single-arm study in newly diagnosed GBM patients following gross total resection and in combo with radiotherapy, temozolomide and Regeneron Pharmaceuticals Inc’s REGN 1.72% Libtayo, he said.
“While the data have demonstrated that a subset of patients had a T cell response to treatment, there is still uncertainty over INO-5401’s individual therapeutic benefit.”
Longer-term and randomized data for the vaccine would help Piper Sandler feel more confident in the program, Raymond said.
An overall survival update due later this year is a key catalyst for the program, the analyst said. Given the uncertainty, he said INO-5401 remains an unmodeled opportunity at this point.
Piper Sandler sees several upcoming catalysts for Inovio, including first-in-human data from INO-4800 due later this month and an update on potential funding for the program to support further development.
“However, given the ongoing volatility surrounding this name over COVID-19 efforts, we prefer to watch this story play out from the sidelines,” Raymond said.
https://www.benzinga.com/analyst-ratings/analyst-color/20/06/16159984/inovio-analyst-watches-coronavirus-play-from-the-sidelines