Maxim analyst Jason McCarthy came out with a brief commentary on Inovio Pharmaceuticals Inc (NASDAQ:INO), after the company announced yesterday that the US Defense Advanced Research Projects Agency (DARPA) has exercised its option to provide an additional $24 million to support the Inovio-led international consortium to develop novel therapeutics for Ebola.
McCarthy wrote, “DARPA exercising its option to add an additional $24M to fund the ongoing efforts by Inovio and the company’s collaborators (mentioned above), showing that the agency is getting behind DNA-based antibodies and DNA-based vaccines for infectious diseases. The original grant was for the study of influenza, Pseudomonas aeruginosa, and Staphylococcus aureus.”
“Inovio continues to bring in additional non-dilutive funding which offsets operating expenses. While the company is developing multiple DNAbased vaccines for infectious diseases and oncology, it is also developing a portfolio of dMAbs against infectious diseases including ebola, dengue, influenza and drug-resistant bacteria. The dMAb platform could also expand to include checkpoint inhibitors, which could preclude the need to partner for combination studies. The $24M option is factored into our model,” the analyst added.
McCarthy rates Inovio Pharmaceuticals shares a Buy, with a price target of $23, which implies an upside of 223% from current levels.
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Jason McCarthy has a total average return of -5.2% and a 33.3% success rate. McCarthy has a 2.1% average return when recommending INO, and is ranked #3193 out of 3768 analysts.
All the 6 analysts polled by TipRanks rate Inovio stock a Buy. With a return potential of 175%, the stock’s consensus target price stands at $19.60.