Inovio (NASDAQ:INO) shares jump with experimental cancer drug deal

Inovio Pharmaceuticals Inc. shares just skyrocketed after the company announced a $700 million deal with AstraZeneca for 2 new experimental cancer medications.
By Aaron Sims | Aug 10, 2015
According to a report from CNN Money, Inovio Pharmaceuticals, Inc. (NASDAQ:INO) leapt 25.12 percent to $8.12 after the company announced a $700 million deal with MedImmune, AstraZeneca's R&D arm. MedImmune will gain the exclusive rights to INO-3312 and INO-3113, two pipeline therapies that aim to treat specific strains of HPV.

MedImmune will pay Inovio $27.5 million up front for the rights, but will pay a total of $700 million over future milestone payments. Analysts all agree that now is a good time to pick up shares of Inovio, Inc.

Inovio reported financial results for the most recent quarter ending on June 30 today, and the company is in good shape for the upcoming deal. Total revenue was $5.3 million and $10.5 million for the 3-and-6-month windows ending on June 30, up from $3.8 million and $6.2 million, respectively, for the year before.

Total operating expenses were $20.4 million and $33.9 million for the 3 and 6 months ending on June 30, up from $14.0 million and $26.3 million from the same periods in 2014.

R&D accounted for the larges portion of expenses, largely due to increased investment in product development programs. General and administrative expenses accounted for a much smaller portion of total expenses.

Inovio is expected to have enough cash on hand to operate through 2018, when it expects to have received the bulk of the $700 million payment for the new experimental drugs.

 

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