Inovio Pharmaceuticals (NASDAQ: INO) started off the year as one of the most hyped-up coronavirus stocks out there. The company, which received funding from the Bill and Melinda Gates Foundation among other sources, was one of the first biotech company’s to announce the development of a potential COVID-19 vaccine early on in 2020. In response to this, shares of the company soared as investors jumped on the opportunity to trade this hot stock.
However, over time, other larger companies ended up securing a lead in development over Inovio’s candidate. As of right now, the company has just announced it would be suspending its planned phase 3 trial for its COVID-19 vaccine, INO-4800.
Inovio went on to say that it had received questions from the U.S. Food and Drug Administration regarding the trial. The company initially said it had planned to begin its tests back during the summer. However, Inovio hit some roadblocks with the FDA, which hadn’t approved its late-stage trials yet. As it turns out, talks with the FDA have bogged the process down, with Inovio having no other option than to indefinitely delay its phase 3 trials until it can make some headway with the regulator. The FDA will provide further notification within 30 days in regards to whether its paused trial will move ahead, or if it will be suspended further.
There are over 100 separate vaccine candidates currently being developed, with 40 of them having begun clinical testing. Although Inovio was one of the first to begin development, other pharmaceutical and healthcare giants like Johnson & Johnson have caught up and surpassed the small biotech company.
In comparison to many of the other large healthcare companies, which have enlisted tens of thousands of participants for their late-stage trials, Inovio’s trials are much smaller in scope and involve fewer people overall.
“This partial clinical hold is not due to the occurrence of any adverse events related to INOVIO’s ongoing expanded Phase 1 study of INO-4800, the conduct of which may continue and is not impacted by the FDA’s notification,” read a statement from the company. “INOVIO and its partners are continuing to prepare for a planned Phase 2/3 trial of INO-4800, following resolution of the FDA’s partial clinical hold and subject to the receipt of external funding to conduct the trial.”
Shares of Inovio ended up plunging around 30% in light of the news, a disastrous development for the once-promising COVID-19 vaccine maker. Although Inovio has a number of different vaccines being developed, INO-4800 was seen as the company’s main chance to a hit a home run. As of right now, it seems that the small biotech company that once was a hot coronavirus stock will fall back to the wayside in comparison to its many other competitors.
Inovio Company Profile
Inovio Pharmaceuticals Inc is a United States based biotechnology company that develops active DNA-based immunotherapies and vaccines to treat and prevent cancers and infectious diseases. The company is engaged in gene therapy, where its immunotherapy platform consists of DNA-based immunotherapy and electroporation delivery technologies. – Warrior Trading News
