Inovio Pharmaceuticals Inc (NASDAQ: INO)
Inovio Pharmaceuticals is having a rough start to the week in the market today. However, this follows a strong day in the market on Friday. With the positive news surrounding the stock, should investors really be concerned about today’s declines? Today, we’ll talk about what we saw on Friday that pushed the stock upward, why we’re seeing declines today, and whether or not investors should be concerned about INO. So, let’s get right to it…
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Why INO Had Such A Strong Day On Friday
Friday’s trading session proved to be an incredibly strong one for Inovio Pharmaceuticals with the stock closing the day up more than 10%. The increase was definitely for a good reason. The company announced that it has started patient enrollment in a key study. INO is working with GeneOne Life Sciences in an attempt to generate a vaccine for MERS, a disease known as Middle East Respiratory Syndrome. Currently INO is working on recruiting patients for the study. The announcement of patient recruitment was the factor that sent the stock soaring! In a statement, Dr. J. Joseph Kim, President and CEO at Inovio Pharmaceuticals had the following to say:
“After partnering with WRAIR and receiving an IND approval from the FDA late last year, we are pleased to now open this trial with our collaborators. The MERS virus has triggered widespread outbreaks and deaths in the Middle East and Korea and the healthcare community is urgently exploring possible preventative and therapeutic solutions… Our broad experience with DNA-based immunotherapies and with MERS specifically suggests we can potentially make an important contribution to developing such a solution. As demonstrated by our recent vaccine development efforts for Ebola, we can readily apply Inovio’s technology to target other threatening infections like MERS and Zika virus as well as other emergent infectious diseases.”
As you can see from the information above, the increase we saw in the value of INO on Friday was more than warranted. After all, MERS is an ongoing crisis, and if INO is able to deliver on their vaccine hopes, we can expect this to be an incredibly profitable endeavor.
Why INO Is Declining Today
I’ve done quite a bit of research this morning and I haven’t been able to find any fundamental reason as to why INO is having such a rough time in the market today. Currently (10:53), INO is trading at $6.70 per share which represents a gain of 0.37%, but a decline from the pre-market trading level of $7.15 per share. So, what’s causing the decline? In my opinion, it’s normal market movement. The reality is that the market tends to move through a series of overreactions. So, after solid gains, it’s not uncommon to see a slight correction, bringing the stock back down to a more sustainable rate. That’s exactly what I believe we’re seeing from Inovio Pharmaceuticals today.
What We Can Expect To See Moving Forward
Moving forward, I have an overwhelmingly positive opinion of what we can expect to see from INO. The reality is that the company is moving in the right direction with regard to future innovation. Through recent years, INO has proven its abilities with regard to medical innovation, and I believe that with the company tackling MERS, it’s only a matter of time before we have a solution, and one that will bring strong gains in revenue and earnings for INO. All in all, I don’t see any reason to be bearish on this stock.
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What Do You Think?
Where do you think INO is headed and why? Let us know your opinion in the comments below!
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