Inovio Pharmaceuticals (NASDAQ:INO), the stock jumped more than 70% in the space of a week due to the company’s involvement in the development of a potential vaccine against the new coronavirus.
Previously burdened with debts and a lack of profitability, the latest update from the Pennsylvania-based pharmaceutical company reversed the downward trend in its stock. As Inovio moves forward with clinical trials, the biotechnology company’s shares have risen slightly.
News from the Food and Drug Administration accepting Inovio’s request means the company will continue phase 1 clinical trials for its coronavirus vaccine. It is the second company to receive approval for human-based trials after Johnson & Johnson, which announced earlier this month a $ 1 billion government research and manufacturing agreement. his coronavirus vaccine. While J&J is not expected to begin testing in humans until September, the Inovio study is expected to test two doses of its vaccine, called INO-4800, in 40 healthy volunteers at the Kansas City research laboratory and at University of Pennsylvania in the coming days.
Investors have reacted positively to this development, which could bring them significant gains in the long term. Data on the effectiveness and safety of the Inovio vaccine will be available this summer but in the meantime, Inovio’s actions are being marked as a solid “buy-in”.
In the midst of an uncertain economic climate, the Inovio coronavirus vaccine is a welcome addition to the company’s pipeline. While it is still too early to discuss the prices of the developed vaccine, for comparison, the Merck MMR / Varicella vaccine costs more than $ 200. If only a quarter of the 327 million people in the U.S. were to use the Inovio vaccine, that’s 81 million syringes at $ 200 each – an addressable market worth $ 16.2 billion in the U.S. only. The main focus, however, is on the need to contain the growing health crisis – one that philanthropic billionaires like Melinda Gates have emphasized the need to “stay affordable”.
The Bill and Melinda Gates Foundation has donated $ 125 million to research a coronavirus vaccine.
“We need to make sure that the vaccine is very cheap and that there is a fund to buy it for everyone, whether you are in a low, middle or high income country,” Melinda Gatessaid. “And it is doable.”