DJ Inovio Pharmaceuticals Down; Bank of America Initiates at 'Neutral'
By Michael Dabaie
Inovio Pharmaceuticals Inc. shares were down 6%, to $9.71, in Tuesday afternoon trading.
Bank of America initiated coverage on Inovio with a "Neutral" rating and $13 price objective.
"While we see potential from Inovio's DNA medicines pipeline, we see significant COVID-19 value baked into the stock," Bank of America said.
Bank of America said that while much of the Inovio debate has become linked to its Covid-19 vaccine INO-4800, the firm sees Inovio's pipeline of DNA-based medicines for indications that include other infectious diseases, HPV-related precancers, and oncology as bigger value drivers.
"INO-4800 contributes a significant portion of our [sum-of-the-parts net present value] and volatility around the C-19 vaccine landscape is what keeps us at a Neutral rating," Bank of America said.
"We aren't negative on the clinical profile of INO-4800 vs. competition, but rather, we see the C-19 vaccine market as increasingly saturated, with little room for upside for a later market entrant," the analyst note said.
Write to Michael Dabaie at michael.dabaie@wsj.com
(END) Dow Jones Newswires
March 23, 2021 14:28 ET (18:28 GMT)
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