Inovio Pharmaceuticals Inc (NASDAQ: INO) is having a relatively strong start to the trading session this morning, and for good reason. The company announced a license and collaboration agreement that’s leading to excitement among investors. Today, we’ll talk about the agreement, what we’re seeing from the stock as a result, and what we’ll be watching for with regard to INO ahead.
INO Announces License And Collaboration Agreement
As mentioned above, Inovio Pharmaceuticals is having a relatively strong start to the trading session in the pre-market hours this morning, and for good reason. The company announced that it has entered into an amended agreement with ApolloBio Corporation surrounding the exclusive right to develop and commercialize VGX-3100. VGX-3100 is INO’s DNA immunotherapy product that was designed to treat pre-cancers caused by the human papilloma virus (HPV).
According to the agreement, ApolloBio will make an upfront payment of $23 million to INO. The company will also provide potential future payments of up to $20 million based on milestones. Finally, Inovio Pharmaceuticals will be entitled to receive double-digit tiered royalty payments on sales of the treatment. In a statement, Dr. J. Joseph Kim, President and CEO at INO, had the following to offer:
“ApolloBio is an excellent partner that brings significant capabilities and expertise relating to product development, the Chinese regulatory landscape, and the healthcare marketplace in China. We are pleased to move forward with an agreement that preserves the best interest for our shareholders by obtaining a greater upfront non-dilutive cash license fee of $23 million and removing the equity provisions. In addition, this collaborative agreement with ApolloBio could potentially accelerate our overall global VGX-3100 efforts by accessing clinical study patients in China. We expect this deal to close in the first quarter of 2018.”
What We’re Seeing From The Stock
As investors, one of the first things that we learn is that the news moves the market. With the strong news surrounding the agreement that will provide key non-dilutive funding for the company, it’s no surprise that we’re seeing strong movement out of INO. Of course, our partners at Trade Ideas were the first to alert us to the gains. At the moment (8:21), INO is trading at $4.28 per share after a gain of $0.15 per share (3.63%) thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on INO. In particular, we’re interested in following this collaboration and the continued development of VGX-3100. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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