release date: August 9, 2013
for quarter ending: June 30, 2013 (Q2, second quarter 2013)
Inovio is a startup mode company. It should be considered a risky investment, with risks similar to venture capital. Inovio will likely need to raise more capital, diluting current shares as it is likely years away from profitability.
Inovio did not hold an analyst call. These article is based on the press release.
Overview: Continues losses while conducting early-stage and Phase 2 trials of its novel vaccine platform.
Basic data (GAAP):
Revenue was $786 thousand, down 48% sequentially from $1.5 million, but up 80% from $436 thousand in the year-earlier quarter.
Net income was negative $10.9 million, down sequentially from negative $8.8 million, and down from negative $4.1 million year-earlier.
EPS (earnings per share, diluted) was negative $0.06, flat sequentially from negative $0.06 and down from negative $0.03 year-earlier.
The revenue was mainly from the PATH malaria vaccine initiative (MVI) grant, the Department of Defense Small Business Innovation Research Grant and the University of Pennsylvania grant. In addition Inovio has a contract with the National Institute of Allergy and Infectious Diseases (NIAID) for development of a universal HIV DNA vaccine, PENNVAX®-GP.
R&D expense was $4.4 million. General and administrative expense was $3.0 million. There was a $1 million gain on sale of assets. Total operating expenses were $6.5 million, leaving a $5.7 million loss from operations. There was a $3.2 million loss from change in fair value of common stock warrants and a $2.0 million loss from investment in affiliated entity. Interest and other income was $0.04 million.
Cash and equivalents balance (including short-term investments) ended at $23.6 million, down sequentially from $28.0 million.
Subsequent to the end of the 2nd quarter, Inovio raised $6.1 million, selling 4.25 million shares at an average price of $1.48. Also warrants to purchase 5.3 million shares were exercised, generating $5.3 million for the company. As a result Inovio has sufficient cash to meet its planned needs through Q1 2015.
VGX-3100, a SynCon vaccine against HPV-caused cancer achieved a strong immune response.
A Phase II trial (HVP-003) for a cervical dysplasia vaccine completed enrollment with data due in mid-2014.
INO-5150 for prostate cancer is scheduled to begin a Phase I trial before the end of this year.
After the quarter ended the results of the Phase I PENNVAX-B preventative HIV DNA vaccine trails was published showing strong T-cell responses. A variation, PENNVAX-GP, is expected to be the primary candidate, with a Phase I study enrolling before the end of 2013.
Inovio and partner VGX International plan a phase I/IIa trial for INO-8000 for Hepatitis C for the first quarter of 2014.
Inovio also has a variety of vaccines in preclinical study. See the Inovio Pipeline for an overview.
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