Halister News

(Bloomberg) -- Inovio Pharmaceuticals falls as much as 10%, most since Oct. 24, as Piper Jaffray analyst Charles Duncan downgraded to neutral from overweight and cut PT to $9 from $13 following 4Q earnings. Maxim Group upgraded the stock from hold to buy, PT $10.

• "We’re capitulating" as timelines for the lead program, VGX-3100 in cervical dysplasia, remain "challenged," Piper Jaffray’s Duncan wrote in a note
  • Says Inovio is almost three years from Phase 2 data, and the Phase 3 trial is still not underway, with "limited visibility" into how/when the FDA clinical hold will be lifted in order to open enrollment in 1H
  • Says the lack of focus and advancement for any one program "poses execution risk" to the broader platform and to shareholders
  • Sees company’s current cash funding operations to mid-2018
  • Pushes peak sales for cervical dysplasia out to 2027 based on projected timelines; pushes peak sales for HIV and cervical cancer to 2028 as programs remain in the Phase 1
• Maxim Group analysts Jason Kolbert and Jason McCarthy wrote in a note that they expect INO to continue to receive grant and collaborative revenue this year, partially offsetting its operating expenses
  • Says INO is "now close" to responding to FDA’s inquiries regarding its clinical hold and expects the Phase 3 trial to begin in 1H
  • Assumes that VGX-3100 for cervical dysplasia is commercialized in 2021
  • Notes multiple earlier stage programs are moving forward with "significant" data points coming throughout the year
• INO has 4 buys, 1 hold, no sells, avg PT $11: Bloomberg
• Reported 4Q earnings yday: ended 2016 with $104.8m in cash, equivalents and investments vs $163m y/y
• NOTE: Feb. 13, Inovio to Get $15m, Investment From ApolloBio After Hold Lifted

To contact the reporter on this story: Tatiana Darie in New York at tdarie1@bloomberg.net To contact the editors responsible for this story: Arie Shapira at ashapira3@bloomberg.net Richard Richtmyer