What happened
Shares of Inovio Pharmaceuticals Inc. (NASDAQ:INO), a biopharmaceutical company developing vaccines, fell 21.3% in November according to data from S&P Global Market Intelligence. Despite reporting some important pipeline progress investors weren't pleased with the company's widening losses.
So what
Inovio Pharmaceuticals Inc.'s third-quarter loss grew 64% to $34.1 million from $20.8 million last year. Without product sales to smooth out the bumps, Inovio's top line is prone to exceptional lumpiness from one quarter to the next as it recognizes various one-time cash infusions from collaboration partners.
IMAGE SOURCE: GETTY IMAGES.
Although total operating expenses remained relatively stable, the wider than expected loss served as a reminder that this company's operating expenses could grow significantly as it advances 10 new drug candidates in clinical-stage development.
Now what
This June, Inovio finally began a long-awaited phase 3 trial with the most advanced vaccine candidate in its development pipeline, VGX-3100 for the treatment of cervical pre-cancer caused by human papillomavirus. Enrolling 198 patients across 100 study centers around the globe isn't going to be cheap.
The company lost $66.7 million during the first nine months of the year. With just $141.9 million in cash, cash equivalents, and short-term investments on its balance sheet at the end of September, I wouldn't be surprised if Inovio announces another value diluting secondary offeringin 2018.
Newly updated! 10 stocks we like better than Inovio PharmaceuticalsWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
On December 8, David and Tom revealed what they believe are the ten best stocks for investors to buy right now… and Inovio Pharmaceuticals wasn't one of them! That's right -- they think these 10 stocks are even better buys.
