Inovio Pharmaceuticals (INO) Stock Gains on Earnings

Inovio Pharmaceuticals Inc (NASDAQ: INO)

Inovio Pharmaceuticals is having an incredible day in the market today, gaining on investor excitement. Early this morning, before the opening bell, the company reported earnings. While a loss was realized, the loss was narrower than analyst expectations. Today, we’ll talk about what we saw from earnings, how investors reacted to the news, and what we can expect to see from INO moving forward. So, let’s get right to it…

INO Reports Strong Quarterly Results

As mentioned above, Inovio Pharmaceuticals reported its first quarter results earlier this morning, beating expectations in revenue and earnings and exciting investors. Here’s what we saw from the report…

  • Revenue – In terms of revenue, INO did incredibly well in the first quarter. During the quarter, analysts predicted that the company would generate a total of $3.1 million in revenue. However, the company reported revenue of $8.1 million in the first quarter, more than doubling analyst expectations.
  • Earnings – In terms of earnings, INO did not disappoint. In fact, the company produced less than half of the loss that analysts were expecting to see. During the first quarter, analysts expected that the company would report a loss of $0.23 per share. However, according to the results released, the loss came in at $0.11 per share; well ahead of expectations.
  • Key Announcement – Aside from financial data, a key announcement was made with regard to VGX-3100, a candidate that Inovio Pharmaceuticals is working on for the treatment of HPV-16/18 high grade cervical dysplasia. According to the announcement, following successful end-of-phase-II conversations with the United States Food and Drug Administration as well as the European Medicines Agency, INO will be starting phase III registration!

As you can see from the data above, the earnings report was overwhelmingly positive. In a statement, INO CEO, Joseph Kim had the following to offer…

The number one point I’d like you to take away from this morning’s call is that Inovio is executing. We are on track to meet our deliverable and trial initiations, data reporting and key corporate developments… I am pleased to report that last month, Inovio held constructive end of phase II meetings with both the US FDA and European EMA. These meetings provided an affirmative path forward toward an indication for VGX-3100 to treat HPV-16/18-related high grade cervical dysplasia that is consitent with our previously stated expectations for a pivotal phase III registration study. We are now finalizing the trial details and are on track to start the study in 2016.”

How The Market Reacted To The News

As investors, we know that the news causes movement in the market, and in this particular case, the news was overwhelmingly positive. In the first quarter, Inovio Pharmaceuticals absolutely blew away earnings expectations. Also, the news surrounding VGX-3100 was overwhelmingly positive. As a result, we’re seeing strong movement in the market today surrounding the stock. Currently (12:03), INO is trading at $9.71 per share after a gain of $0.75 per share or 8.37% thus far today.

What We Can Expect To See Moving Forward

Moving forward, I have an overwhelmingly bullish opinion of what we can expect to see from Inovio Pharmaceuticals. The reality is that the company is doing an incredible job of following through with the plans that it set fourth quite a while ago. With strong earnings, a great plan, and the desire to follow through with that plan, I’m expecting to see further positive movement on the stock moving forward.

What Do You Think?

Where do you think INO is headed and why? Let us know your opinion in the comments below!