Conference date: May 12, 2014 @ 5:30 AM Pacific Time
for quarter ending: March 31, 2014 (Q1, first quarter 2014)
Overview: Awaiting trial results, Inovio is a development stage company specializing in DNA based vaccines.
Basic data (GAAP):
Revenue was $2.4 million, up sequentially from $1.7 million, and up from $1.5 million in the year-earlier quarter.
Net income was negative $10.8 million , improved sequentially from negative $15.5 million, but down from negative $8.8 million year-earlier.
EPS (earnings per share, diluted) was negative $0.05, improved sequentially from negative $0.07, but down from $0.06 year-earlier.
$1.4 million of the revenue in the first quarter was from the development agreement with Roche.
R&D expense was $8.2 million. General and administrative expense was $4.1 million. Total operating expenses were $12.4 million. Inovio reported a a negative $10.0 million operating profit. Other expense including change in stock warrant value and loss on an investment were $0.8 million.
Cash and equivalents balance (including short-term investments) ended at $116.8 million, up sequentially from $98.8 million. Liability in common stock warrants $6.0 million. During the quarter Inovio raised net $59.2 million cash selling shares at $2.90. Also warrants and stock options were exercised generating $10.7 million in cash. The fully-diluted share count ended at 265.6 million.
The y/y increase in net loss of $2 million was mainly the result of increased non-cash stock based compensation.
Data from the Phase II study of VGX-3100 for HPV-casued cancer is due to be reported in mid-2014. This quarter two separate phase I/II studies of VGX-3100 plus an immune activator IL-12 (the combination will be designated INO-3112) will be initiated. Inovio is preparing for a Phase III study of VGX-3100 pending the outcome of the Phase II trial.
A Phase I trial of INO-5150 for prostate cancer is planned to initiate in Q3 parntering with Roche. The launch will trigger a milestone payment from Roche.
In Q4 a Phase I study of Pennvax-GP for HIV is expected to begin.
Also planned are exploratory studies for INO-1400, hTERT DNA immunotherapy for breast, lung, and pancreatic cancers.
Strong T-cell responses generated by Inovio vaccines could show the potential for combination with other therapies including immune checkpoint inhibitors.
Inovio also has a variety of vaccines in preclinical study. See the Inovio Pipeline for an overview.
Management believes cash is sufficient to operate the company through the end of 2017.
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