Dallas, Texas 07/09/2015 (Financialstrend) – Inovio Pharmaceuticals Inc (NASDAQ:INO) has been a disappointment on a 10-year view compared to other biotech stocks that have outperformed the S&P 500. However, over the past two years the stock has shown its potential in the market backed by high volatility levels.
Partnerships in Drug Development
The company’s vaccine development platform focused on developing cancer immunotherapy vaccines has been the main catalyst behind the recent rally. A poor showing on the ten-year view has been down to Inovio spending a great deal in developing drugs as it tries to grow its portfolio.
Inovio Pharmaceuticals Inc (NASDAQ:INO) enjoys an edge in the pharmaceutical space on its ability to partner with other pharmaceutical companies in developing drugs. The strategy has seen it incur less in terms of costs of developing drugs compared to developing them by itself. Other clinical-stage biotechnology company opts to raise cash by carrying out common stock offerings which most of the time ends up diluting existing shares.
Instead of carrying out debt offerings Inovio Pharmaceuticals Inc (NASDAQ:INO) has resorted to forming collaborations as well as licensing out drugs as one of the ways of generating revenue and offsetting any potential cash crunch. The company has partnered on its entire infectious disease portfolio made of seven therapeutics.
Expected Impact of Lead Drug
Inovio Pharmaceuticals Inc (NASDAQ:INO)’s lead product VGX-3100 could be an important catalyst of the stock going forward on solid late stage data. The drug targets cancer and pre-cancers of the cervix commonly caused by human papillomavirus. The drug has already met its primary and secondary endpoints.
Impressive results on Phase 3 studies should open up recurring revenue for Inovio especially on the drug getting the FDA approval. The drug could generate up to $500 million in annual peak sales, according to estimates.
Inovio Pharmaceuticals Inc (NASDAQ:INO)’s young and robust vaccine development platform makes it a potential acquisition target and a possible catalyst for the stock going forward.