Inovio Pharmaceuticals Inc (NASDAQ: INO) is having an overwhelmingly strong start to the trading session this morning, and for good reason. The company announced that it has closed a license and collaboration agreement with ApolloBio. Of course, as soon as investors heard the news, the stock started to find its way upward. Today, we’ll talk about the news, what we’re seeing from INO, and what we’ll be watching for with regard to the stock ahead.
INO Gains On License And Collaboration Agreement
As mentioned above, Inovio Pharmaceuticals is having an incredibly strong start to the trading session after announcing that it has entered into an agreement. In a press release issued early this morning, the company announced that it has closed a license and collaboration agreement with ApolloBio. Under the terms of the agreement, AppolloBio will gain exclusive rights to develop, manufacture and commercialize VGX-3100, a DNA immunotherapy product designed by INO.
Under the terms of the agreement, Appollo Bio will make an upfront payment to INO in the amount of $23 million. The company may also access potential future payments up to $20 million based on meeting milestones. Also, Once sales take place under this agreement, Inovio Pharmaceuticals will receive a double-digit tiered royalties. In a statement, Dr. J. Joseph Kim, President and CEO at INO, had the following to offer:
We are pleased to close this agreement that opens large markets and brings us $23 million in non-dilutive cash with future milestone payments and royalties on sales. ApolloBio is an excellent partner that will provide significant capabilities and expertise relating to product development, the Chinese regulatory landscape, and the commercial market in China. This agreement strengthens and expands our global efforts to develop VGX-3100.
The above statement was followed up by Dr. Weiping Yang, CEO at ApolloBio. Here’s what he had to offer:
With this license and collaboration agreement we are now on the path to introduce late-stage innovative new drugs to meet severely unmet medical needs within the Greater China region… We are excited at the potential for VGX-3100 to address multiple indications within HPV-associated precancer, and we are very pleased to launch this strategic collaboration with Inovio, an innovative global biotechnology partner.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dabble in the market is that the news causes moves. In this particular case, the news surrounding Inovio Pharmaceuticals proved to be overwhelmingly positive. So, it’s no surprise that we’re seeing positive movement in the market as a result. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. At the moment (8:56), INO is trading at $5.35 per share after a gain of $0.24 per share or 4.70% 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 the development of VGX-3100 in China under this collaboration as well as the continued development of the rest of the company’s impressive product pipeline. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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