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The stock of Inovio Pharmaceuticals is down 23% now despite the company’s announcement of a positive result from its INO-4800 clinical trials.
The stock of Inovio Pharmaceuticals Inc (NASDAQ: INO) is on the downtrend despite an announcement by the company stating success in its coronavirus vaccine candidate early-stage trial. The result from Inovio’s INO-4800 clinical study has been seen as overhyped in comparison to studies from similar COVID-19 vaccine candidates.
The biotech firm’s shares plunged by 14.96% on Tuesday amounting to a $4.74 loss to close at $26.95. The company’s stock position could not recover after trading opened on Wednesday as it is now 23% down, trading at $20.82. Inovio’s fall in price serves as a bad development as the stock gained a massive boost last week following market reactions to the U.S. Department of Defense investment in the company’s Cellectra 3PSP vaccine administration devices.
About Inovio’s COVID-19 Research
Inovio Pharmaceuticals is an American biotechnology company focused on the discovery, development, and commercialization of synthetic DNA products for treating cancers and infectious diseases.
In February 2020 after receiving details of the genetic sequence of the coronavirus, Inovio announced that it had produced a preclinical DNA-based vaccine as a potential therapy for COVID-19. Inovio is in competition to develop a coronavirus vaccine with numerous other companies, which were conducting preclinical or early-stage human research on more than 170 vaccine candidates, as of late June. In April 2020, Inovio began a Phase I trial of the COVID-19 vaccine candidate, INO-4800.
The Phase 1 clinical trial of INO-4800 had about 40 healthy adult volunteers aged 18 to 50 years and was carried out at two U.S. sites with funding from the Coalition for Epidemic Preparedness Innovations (CEPI). The participants were enrolled in 1.0 mg and 2.0 mg dose cohorts; each participant received two doses of INO-4800 four weeks apart. Each dose was administered by intradermal injection using INOVIO’s CELLECTRA® 2000 device.
Controversies Surrounding The Phase 1 Inovio Vaccine Trial Result
As announced by Inovio, Data from the first clinical trial was obtained by an independent Data Safety Monitoring Board reviewed the safety data. INO-4800 was generally safe and well-tolerated in all participants in both cohorts through week 8. All ten reported adverse events (AEs) were grade 1 in severity, and most were local injection site redness. There were no reported serious adverse events (SAEs).
While this result shows promises, experts believe the company did not disclose how many patients produced neutralizing antibodies which are highly essential in preventing the coronavirus. This discrepancy as perceived may make INO-4800 not as effective as been peddled by the company, an outlook that investors are currently reacting to.
Feasible Correctional Measures
For the tens of COVID-19 vaccine candidates out approved by the United Nations, the goal is to meet people’s expectations by producing a vaccine that will be approved by health regulatory bodies as well as find acceptance among the populace. Inovio Pharmaceuticals will need to take note of expert’s concern in further trials which will go a long way in getting public approval as would be evident in the company’s subsequent stock performance.