Inovio Shares Surge on News of Experimental Flu Vaccine Approach

Shares in Inovio Biomedical (INO) almost tripled in value last week, as the company became the latest to benefit from the rush to own pandemic flu-related stocks. An announcement that its DNA-based vaccine generated positive pre-clinical results with flu virus strains currently in circulation prompted the surge.

Inovio hopes that its technology will lead to a universal flu vaccine, one that can protect against any strain the virus throws into the mix, whether seasonal or pandemic. Clearly a universal vaccine would be the ideal situation. However, DNA vaccines are still very much rooted in the experimental sphere, and the chances of one making it to the market to help fight the current pandemic are very low.

In fact, few DNA vaccines have made it into a late-stage clinical trial, let alone the market. Rather than live attenuated vaccines or subunit vaccines which consist of protein antigens or protein components which prompt an immune response, DNA vaccines are made up of a small piece of bacterial DNA called a plasmid. These are genetically engineered to produce specific protein antigens from a particular micro-organism, which are recognised by the body as foreign and attacked.

The theory behind DNA vaccines is certainly sound. Manufacturers would be able to make large quantities quickly and relatively simply and cheaply. They can also illicit a wider range of immune responses, including much stronger and long lasting killer t-cell responses, than traditional antibody-based vaccines.

However, caution is certainly warranted, not least because of lack of clinical evidence. Regulators would be incredibly cautious before approving such a novel technology. Only one DNA vaccine has made it to the market so far, to protect horses against West Nile Virus.

In need of proof of concept

Much of the work on DNA vaccines is likely to be largely unannounced due to its early stage, particularly at the larger vaccine companies. One firm bought by Pfizer (PFE) a couple of years ago, PowderMed, was working in the space and the company announced positive phase I results in 2006 from a flu candidate. However, since the takeover Pfizer has not made any further announcements about any clinical candidates.

Smaller firms have made encouraging progress. Vical (VICL), for example, has a cytomegalovirus candidate in phase II, called TransVax, and other earlier stage products, including pandemic flu. It is more advanced than Inovio, having started phase I trials in 2007, and the company is now looking for further funding to continue research.

Despite the caveats that surround DNA vaccines, Inovio decided to use the share price boost it got last week for a swift fundraising. The stock finished the week just over $2.00, up from 74 cents prior to the news, a two-year high.The group raised $30m from investors on Friday.

Given the high risk and experimental field, firms working with DNA vaccines would be well advised to take these opportunities whilst pandemic flu remains in the headlines. Inovio is unlikely to be the last to do so amongst the long list of companies who have benefited recently from investors' desire to cash in on swine flu (Pandemic threat prompts surge of speculative investments, April 28, 2009).

Comments

[dlapham:]

Lez, this is an investor webstite. Your post should be on conspiricy.com


On Aug 04 08:32 AM Lez wrote:

> Sick, making money out of the Eugenists who develop the virus then
> make the vaccines which contain terrible things like mercury , cancer
> viruses & things which sterilise people, and god know what else.
> Ever wondered why there is so much cancer so much autisum and people
> having so much trouble concieving & everything else inbetween.
> Well here it is another bullet to the world.
> You who support it is no different. Do your research & see the
> truth for yourself. This Hype on Swine Flu is now the push to create
> Mas Genocide & to shove the entire world under a complete Fascists
> state, the New World Order, run by these criminals who do this. Watch
> who you back.

Aug 04 04:49 PM

[gillyak:]

Lez actually made some valid points before the hyperbole got in the way

Caution against vaccine coming to market is well advised, but sure would be nice if a firm did develop a safe (non-toxic) and effective (more than 12%) product that was universally applicable.

Stranger things have happened

Aug 05 01:13 PM

[earrocha:]

"Smaller firms have made encouraging progress. Vical (VICL), for example, has a cytomegalovirus candidate in phase II, called TransVax, and other earlier stage products, including pandemic flu. It is more advanced than Inovio, having started phase I trials in 2007.."
This is false. Vical is just starting with Phase I trials (sourse: Q2 10K) with TransVax. Sounds like both seekingalfa and thestreet.com reporters are both bashing Inovio because they made a better vaccine and delivery system.

Aug 08 02:55 PM

[Ellito:]

earrocha;
You are right.
Nowadays so many analysts have bias and agendas.
Can't trust most of them.
Good for you to point out the difference between
INO and VICL.
INO may some day becomes the "KING of VACCINE."
appreciate that very much.

Aug 08 04:21 PM

[dr. who:]

Based on my research found it really interesting that Inovio has Robert S. Langer, Sc.D. on its advisory board. "Dr. Langer is the Chairman of the FDA's Science Advisory Board, its highest advisory panel." - Inovio website Bio

-With Obama's flu summit this weekend" - “Everybody recognizes that H1N1 is going to be a challenge for all of us and there are going to be people getting sick in the fall and die,” John Brennan, Obama’s deputy national security adviser, said. it this weekend.

If fast track development is cheaper (4 weeks to develop DNA vaccine) I would think even over the near term Inovio could provide a solution.

Aug 09 11:31 AM

[dr. who:]

Good point, what would have been useful if they told us who the other investors in the stock issue were. I looked on their 10k and found even UBS has a small stake -


On Aug 08 02:55 PM earrocha wrote:

> "Smaller firms have made encouraging progress. Vical (seekingalpha.com/symbo...),
> for example, has a cytomegalovirus candidate in phase II, called
> TransVax, and other earlier stage products, including pandemic flu.
> It is more advanced than Inovio, having started phase I trials in
> 2007.."
> This is false. Vical is just starting with Phase I trials (sourse:
> Q2 10K) with TransVax. Sounds like both seekingalfa and thestreet.com
> reporters are both bashing Inovio because they made a better vaccine
> and delivery system.

Aug 09 11:34 AM

[dr. who:]

apparently there could be an announcement of some sort on Monday;
www3.signonsandiego.co...

Aug 09 07:16 PM